CREDIT RISK MANAGEMENT OF COMMERCIAL BANKS IN NEPAL

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.