CREDIT RISK MANAGEMENT OF COMMERCIAL BANKS IN NEPAL
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Shanker Dev Campus
Abstract
This study examines The Credit Risk Management of Commercial Banks. The study
based on secondary data of four commercial banks with 10 observations for the
periods 2013/14 to 2022/23. The Return on Assets is selected as dependent variables
while Capital Adequacy Ratio, Non- Performing loan Ratio, Cost per loan assets are
the independent variables. The data were collected from annual reports of concern
sample bank. The Pearson's correlation coefficients and regression models, variance
inflation factors (multicollinearity in regression model results) are too estimated to
test significant impact of bank specific factors on The Credit Risk Management of
Commercial Banks. Calculated data has been tabulated and analyzed by using MS
Excel and SPSS. The result shows that Capital Adequacy Ratio, Non-Performing
Loan, Cash Reserve Ratio are positively significant with Return on assets whereas
Cost per loan assets has insignificant with Return on assets. The study concludes
Capital Adequacy Ratio and Non-Performing loan ratio, Cost per loan assets and
return on assets of Nepalese commercial banks.