CREDIT MANAGEMENT OF COMMERCIAL BANK IN NEPAL
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Shanker Dev Campus
Abstract
The researcher has identified a research problem and established objectives aimed at
addressing issues related to credit management within selected commercial banks, as
outlined in the introduction chapter. The primary goal of the study is to conduct a
comparative analysis of credit management practices among Global IME Bank Limited,
Nepal Investment Mega Bank Limited, Nabil Bank Limited, and Kumari Bank Limited,
focusing on enhancing customer experiences across various touch points. This research
relies on secondary data sources, including annual reports, official reports, economic
journals, financial statements, and authorized websites of the concerned banks, as well as
the Nepal Stock Exchange. To augment the effectiveness of the study, pertinent literature
has been thoroughly reviewed, providing a foundational understanding to conduct precise
research. The literature review serves as a knowledge base for comprehensively exploring
the subject matter. Furthermore, the study offers an overview of key financial metrics
such as Return on Equity (ROE), Capital Adequacy Ratio (CAR), Non-Performing Loan
Ratio (NPL), Cash Reserve Ratio (CRR), and Loan Loss Provision (LLP). These metrics
provide insights into the financial performance and risk profiles of the banks under
examination, shedding light on their interrelations and influences on overall financial
performance. The research employs regression analysis, with ROE as the dependent
variable and CAR, NPL, CRR, and LLP as independent variables. The model's R-squared
value indicates its explanatory power in elucidating variations in ROE, while the Fstatistic underscores its overall efficacy in predicting ROE. This regression model serves
as a valuable tool for both prediction and comprehension of the determinants of ROE,
underscoring the significance of the model in explaining variations in ROE. The high
significance of the F-statistic underscores the model's robust explanatory capacity.
Keyword: Return on Equity, return on Assets, capital Adequacy Ratio, Non Performing
Loan Ratio, Cash Reserve Ratio, Loan Loss Provision.