scholarly journals Credit Risk Management and Its Influence on the Financial Performance of Banks: A Study of Selected Banks in Nigeria

2018 ◽  
pp. 1-11
Author(s):  
Oyedele Oloruntoba ◽  
Adeyemi, Adewumi Zaid ◽  
Fasesin, Oladipo Oluwafolakemi
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Significant Influence ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Negative Influence ◽  
Credit Risk Management ◽  
Code Of Corporate Governance

This study examines the influence of credit risk management on the performance of Nigerian banks with particular reference to selected banks. Purposive sampling technique was used to select five Nigerian banks. Secondary data was used for this study. It was adopted from the audited financial statements of the listed banks in the Nigerian Stock Exchange (NSE), for the period of the year 2006 – 2017. This study also made use of Nigerian Stock Exchange Fact Book 2017 for the Nigerian banks and CBN bulletin 2017. The method of analysis used descriptive statistics and Linear Regressions. Result reveals that NLPR (β = 0.809), CARR (β = 11.246) and LTDR (β = 6.300) have significant influence on financial performance measured by ROA. Furthermore, the result also shows that CARR (β = 17.982) and LTDR (β = 3.227) have a significant influence on financial performance measured by ROE but NLPR (β = - 1.57) has a negative influence on ROE. The study concludes that credit risk management apparatus employed by the selected banks for the periods of study have a significant influence on their financial performance. The study, therefore, recommends that regulatory authorises should implement a new code of corporate governance that bank directors with non-performing loans (NPLs) are to either quit or be sacked and also banks' boards to remove any director with insider non-performing loans.

scholarly journals Pengaruh Credit Risk Management Pada Financial Performance Bank Konvensional Yang Terdaftar di BEI

2021 ◽  
Vol 26 (3) ◽  
pp. 447
Author(s):  
Ervina, Vivi N. Fatimah, H.S.Lestari
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Secondary Data ◽  
Sampling Technique ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Capital Adequacy Ratio ◽  
Conventional Banks ◽  
The Impact

The purpose of this study is to analyze the impact of credit risk management on the financial performance of Indonesian conventional banks in 2016-2020. The sample in this study was 32 conventional banks from 160 observations using purposive sampling technique and secondary data. The dependent variable in this paper is measured by profitability using the return on assets proxy while credit risk management as an independent variable. From the research results, LDR and NPLR have no effect on financial performance. CAR has a positive influence on financial performance so that bank managers are expected to be able to maintain their capital adequacy ratio in accordance with the provisions set by Bank Indonesia to maintain their financial performance because a high capital adequacy ratio is considered safe and tends to meet its financial obligations, while CIR and LDR negative effect on financial performance. By increasing the ratio of costs to income indicates a low level of efficiency in banking operational costs, and low liquid assets will increase cash reserves to reduce liquidity risk. Investors can invest their funds in banks that have a high capital adequacy ratio, cost of income ratio and liquidity ratio to avoid financial risk.

scholarly journals Pengaruh Dari Intensitas Modal dan Tangibility Terhadap Kinerja Keuangan Perusahaan (Studi Empiris Pada Perusahaan Asuransi dan Perbankan Yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2011-2015)

InFestasi ◽  
2018 ◽  
Vol 14 (1) ◽  
pp. 80
Author(s):  
M Aldy ◽  
Sany Dwita ◽  
Mayar Afriyenti
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Capital Intensity ◽  
Negative Influence ◽  
Financial Statement ◽  
Firm Financial Performance ◽  
Equity Ratio ◽  
Independent Variable

This study aims to examine the influence of capital intensity and tangibility for firm financial performance. Financial performance is the dependent variable in this study that measured by ROA (Return on Asset).Independent variable in this study are capital intensity andtangibility, using the proxies of CIR (Capital Intensity Ratio)and DER (Debt to Equity Ratio). This study uses secondary data from financial statement of banking and insurances companies listed on Indonesian Stock exchange (IDX) for the period of 2011 to 2015. The purposive sampling technique was used to choose the study’s sample, resulting with 30 banking and 10 insurances companies. The data were analyzed using multipleregression to test the hypotheses formulated in this study. The results of this study show that partially,capital intensity and tangibility variablehave significant negative influence on capital structure. Whereas simultaneously, both have significant influence on financial performance. The resulted adjusted-R square, 56.6 percent, indicatesthat5.6percentof the changes in the value of the dependent variable can be explained by the changesin the values of the independent variables, namely, capital intensity and tangibilitywhile the remaining 43.4 percentchanges are explained by other variable outside the model.

scholarly journals Financial Performance and Stock Price: Another Review on Banks Listed in Indonesia Stock Exchange

2021 ◽  
Vol 3 (1) ◽  
pp. 70
Author(s):  
Erlyta Agustine Noviyanti ◽  
Caecilia Wahyu Estining Rahayu ◽  
Christina Heti Tri Rahmawati
Keyword(s):  
Financial Performance ◽  
Significant Influence ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy

Financial performance is an important factor to attract investors in buying stocks. This study aims to determine the influence of financial performance measured by Non-Performing Loan Ratio (NPL), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Net Profit Margin (NPM) on price of stocks of banks listed in the Indonesia Stock Exchange (IDX) during 2014-2018. Of 43 banks, there were only 31 banks fit the criteria under purposive sampling technique. The data used in this study are secondary data obtained from the official website of Indonesia Stock Exchange (www.idx.co.id). Multiple linear regression analysis was applied for analyzing the data that were tested for classic assumptions. The results showed that simultaneously NPL, LDR, CAR, DER, ROA and NPM had significant influence on stock prices. Partially, the result showed that only ROA and NPM had a significant influence on stock prices. Banks must then focus mainly on ROA and NPM in attracting investors.

scholarly journals Political Connection and Credit Risk Management: Its Effect on Bank’s Performance

2019 ◽  
Vol 4 (3) ◽  
pp. 112-121
Author(s):  
Fahmi Setiadi ◽  
Y Anni Aryani
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Annual Report ◽  
Stock Exchange ◽  
Growth Period ◽  
Political Connection ◽  
Credit Risk Management ◽  
Credit Growth ◽  
Banking Institution

The present study examines the effect of political connection and credit risk management on Indonesian bank’s performance during the declining credit growth period. The present study involved 258 banks that registered in the Indonesian Stock Exchange from 2012 to 2017 as the sample of the study. Company political connection was measured using headcount index, credit risk management was measured by its credit risk value or NPL, and the company financial performance was measured based on Return on Asset. The data of the study were obtained from banks and Indonesian Stock Exchange annual report. The result of regression analysis showed that Indonesian bank’s political connection positively and significantly affected financial performance, and credit risk significantly affected bank’s financial performance. This result implied that banks in Indonesia needs political connection and improve their credit risk management in order to improve their financial performance during the declining credit growth period. The present study reveals a new fact that in order to maintain financial performance during the declining credit growth period, banking institution may utilize their political connection and improve their credit risk management. Keywords: Political Connection, Credit Risk Management, Bank Performance, Credit Growth

scholarly journals Impact of Credit Risk Management Systems on the Financial Performance of Commercial Banks in Uganda

2018 ◽  
Vol 66 (6) ◽  
pp. 1627-1635
Author(s):  
Isah Serwadda
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Commercial Banks ◽  
Risk Measures ◽  
Secondary Data ◽  
Credit Risk Management ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
The Impact

The paper is set to analyse the impact of credit risk management on the financial performance of commercial banks in Uganda for a period of 2006–2015 using panel data for a sample of 20 commercial banks. The study employs return on assets as a dependent variable and non‑performing loans, growth in interest earnings and loan loss provisions to total loans as credit risk measures. Secondary data is sourced from the Bank scope database, African development bank and the central bank of Uganda. The study employs descriptive statistics, regressions and correlation analysis. Regression models are to estimate the magnitude of significance of credit risk management on the performance of commercial banks in Uganda. The study revealed that credit risk management impacts on the performance of Ugandan commercial banks. The results portrayed that banks’ performance was inversely influenced by non‑performing loans which may expose them to large magnitudes of illiquidity and financial crisis. Thus given such results, the researcher recommends that banks need to enhance their credit risk management techniques not only to earn more profits but also to maintain a qualitative asset portfolio and attention be given to non‑performing loans, loan loss provision to total loans and growth in interest earnings that were found to be significant. Banks need to design appropriate credit policies that must handle all necessary conditions before advancing credit to their customers and also develop strong credit administration committees and teams that must conduct appropriate and sound loan appraisal evaluations and which must also monitor the loans throughout the required processes right from extending a loan to a customer up to the completion of loan repayments so as to mitigate credit risks.

scholarly journals An Assessment of Credit Risk Management Practices of Adansi Rural Bank Limited

2018 ◽  
Vol 10 (11) ◽  
pp. 110 ◽  
Author(s):  
Alexander Ayertey Odonkor
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Secondary Data ◽  
Sampling Technique ◽  
Management Policy ◽  
Primary Data ◽  
Credit Risk Management ◽  
History Of ◽  
Management Policies

Rural banks in Ghana are not exempted from the risk exposures associated with managing credit. Given their importance to the economy, appropriate measures should be taken to mitigate credit risk exposures of rural banks in the country. The study critically examines the credit risk management practices of rural banks in Ghana making reference to Adansi Rural Bank Limited. The study was carried out to examine the credit management practices, credit policies and strategies for managing credit as well as challenges faced in this practice and to recommend solutions that will mitigate the credit risk exposures of Adansi Rural Bank Limited. The researcher used a purposive sampling technique to select a sample size of forty respondents which comprised of branch managers and credit officers from four different branches of the rural bank. The researcher used a well structured questionnaire and a face to face interview to collect primary data for this study. The researcher employed both primary and secondary data in the study. Descriptive statistical tools were used in analysing the data collected. The researcher discovered that Adansi Rural Bank Limited had implemented a rigorous credit risk management policy. This included; loan appraisal, use of collateral and checking the credit history of borrowers. The results of the study revealed that, rural banks that have implemented rigorous credit risk management policies were exposed to few challenges in managing credit risk as compared to rural banks with poorly implemented credit risk management policies. This affirms the point that a comprehensive credit risk management system should be adopted and implemented well by rural banks in Ghana.

The Effect of Managerial Ownership, Financial Performance, Corporate Competition on Stock Prices with Capital Structure as the Intervening Variable in the Coal Mining Companies Listed on the Indonesia Stock Exchange

2020 ◽  
Vol 2 (1) ◽  
pp. 24-33
Author(s):  
Yulia Afriani ◽  
Abdul Rakhman Laba ◽  
Andi Aswan
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Coal Mining ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Managerial Ownership ◽  
Firm Competition ◽  
Mining Companies

This study aimed to find out the effect of managerial ownership, financial performance, corporate competition on stock prices with capital structure as the intervening variable in the coal mining companies listed on the Indonesia Stock Exchange. Managerial ownership variables by the shareholding presentation. Financial performance variables by Total Asset Turnover (TATO). Firm competition variable by Concentration Ratio (CR). Capital structure variables by Debt to Equity Ratio (DER). Stock prices variable by Price to Book Value (PBV). The population of this study was the coal mining companies listed on the IDX. This study used Purposive as the sampling technique. The data source was secondary data from financial statements published through the IDX official website. This study used descriptive statistics and inferential statistics with a quantitative approach using regression techniques with the E-Views version 10 program. The results of this study showed that the dealings of managerial ownership had a positive and significant effect on DER, TATO had a negative and not significant effect on DER, while CR had a negative and significant effect on DER. The dealings of managerial ownership, TATO, DER has a positive and significant effect on PBV, while CR has a negative and not significant. The dealings of managerial ownership influences PBV through DER, interestingly TATO has no effect on PBV through DER and CR influences PBV through DER

ANALISIS RETURN ON INVESTMENT (ROI) UNTUK MENILAI KINERJA KEUANGAN PADA PT. MITRA INVESTINDO, Tbk.

2021 ◽  
Vol 3 (1) ◽  
pp. 35-43
Author(s):  
Dedy Hardiansyah ◽  
Nurhayati Nurhayati
Keyword(s):  
Financial Performance ◽  
Return On Investment ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Literature Study ◽  
Descriptive Research ◽  
Analysis Technique ◽  
Research Population ◽  
Quantitative Descriptive

The purpose of this study is to find out how much Return On Investment (ROI) is to assess the financial performance of PT Mitra Investindo, Tbk. This type of quantitative descriptive research uses secondary data. Data collection techniques are documentation and literature study. Research population for 22 years from the start of listing on the Indonesia Stock Exchange 1997-2019. Then a sample of 10 years from 2010-2019 with purposive sampling technique. The data analysis technique used statistical analysis with a one-sample t-test. The results showed that the Return On Investment (ROI) to assess the financial performance of      PT Mitra Investindo, Tbk was in a bad condition because it was less than 30% of the expected.

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