management

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Browsing management by Author ". Bhoj Raj Ojha"

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    IMPACT OF CREDIT RISK MANAGEMENT ON PERFORMANCE OF COMMERCIAL BANKS IN NEPAL
    (Shanker Dev Campus, 2024) Ramesh Raj Bhandari; . Bhoj Raj Ojha
    This study examines credit risk management practices in Nepalese commercial banks, with a specific focus on Everest Bank Ltd. (EBL), NABIL Bank Ltd. (NABIL), and Standard Chartered Bank Ltd. (SCB). The research investigates the effectiveness of credit risk management frameworks, governance mechanisms, and the role of regulatory bodies in mitigating risks. Using secondary data from annual reports of the selected banks, regu- latory authority reports, and other relevant sources, the study analyzes various financial indicators such as credit deposit ratio, capital adequacy, non-performing loans (NPL), loan loss provisions, and lending practices. The findings suggest that while all sample banks maintain adequate capital ratios and core capital levels, EBL demonstrates superior credit risk management, particularly in terms of loan loss coverage. Conversely, NABIL faces higher credit risks due to a relatively weaker credit appraisal and governance sys- tem. The research highlights the increasing credit risk challenges faced by these banks, and the lack of diversification in their lending portfolios. The study recommends that banks enhance their loan assessment practices, focus on sustainable growth policies, and ensure regular monitoring of credit portfolios to minimize defaults. Additionally, it sug- gests that future research could expand the data set and explore different sectors to further validate the findings. Overall, the study contributes valuable insights into the current state of credit risk management in Nepalese banks and provides recommendations for improv- ing banking practices.