Non-Performing Loans and Financial Performance of Commercial Banks in Tanzania

Mrindoko, Allen Emmanuel; Macha, DrSalvio; Raphael, Gwahula

doi:10.35409/ijbmer.2020.3219

Cited by 4 publications

(2 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In bank performance studies, the portfolio theory method is the most relevant and plays a vital role. The banks should diversify their investment portfolios to reduce the CR takers defaulting on loan repayments and causing NPLs portfolios that affect profitability [ 73 ].…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

El-Halaby

Soliman

2022

Futur Bus J

View full text Add to dashboard Cite

Purpose The increased number of nonperforming loans (NPLs) during COVID-19 pandemic has interrogated the robustness of banks and stability of the whole banking segment. We examine the impact of credit risk (CR) on financial performance (FP) by comparing Islamic banks (IBs) to conventional banks (CBs). We also investigate the influence of COVID-19 on this association. Design/methodology/approach Our sample includes the largest 200 banks across 15 countries from the Middle East and the Africa (MEA) region over a four-year period (2018–2021). Panel ordinary least squares (OLS) with fixed and random effects were used. Findings We find a negative association between NPLs and FP for IBs and CBs. We reveal that COVID-19 is partially mediated the association between NPLs and FP in case of the whole sample and separated sample of CBs while not in case of IBs. Originality The evidence of CR and FP on samples of financial sector across MEA region has not been studied in the era of COVID-19 as far as we know. Research limitations/implications This study contributes to the knowledge of the risk and financial performance during the crisis nexus and provides information that is valued to bankers, academics, managers and regulators for policy formulation.

show abstract

Section: Theoretical Frameworkmentioning

confidence: 99%

The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

El-Halaby

Soliman

2022

Futur Bus J

View full text Add to dashboard Cite

show abstract

“…Various scholars have published extensive literature regarding the management of credit risks. Contrariwise, a large part of the available literature concentrated more on credit risk management in commercial banks and little about microfinance institutions (Aliu & Sahiti, 2016;Idama et al, 2014;Kaimu & Muba, 2021;Mogga et al, 2018;Mrindoko et al, 2020;Tamwesigire & Eton, 2022). Concentrating this analysis on microfinance institutions makes a lot of sense because they are the ones confronting more challenges related to credit risk management than commercial banks.…”

mentioning

confidence: 99%

Influence of Credit Risk Management Practices on Loan Performance: A Case of Selected Microfinance Institutions in Tanzania

Mwakujonga,

Komba

2024

JPDS

View full text Add to dashboard Cite

This research investigates the influence of credit risk management practices on loan performance of microfinance institutions. The variables of interest in this study are credit appraisal, credit supervision, credit monitoring (as predictor variables) and loan performance (as dependent variable). However, the study includes average credit processing time as a control variable. The study focuses on five microfinance institutions operating in Tanzania. The research utilizes probability and non-probability sampling to select 140 respondents from the study population. The study collected both primary and secondary data. Data analysis was carried out by applying multiple regression analysis following the assumptions of ordinary least squares (OLS). The findings reveal that credit supervision, credit monitoring, and average credit process time are significant in influencing loan performance in microfinance institutions. Contrary, there is no evidence, whatsoever to suggest that credit supervision influences loan performance in microfinance institutions.

show abstract

Impact of the quality of credit risk management practices on financial performance of commercial banks in Tanzania

Temba,

Kasoga,

Keregero

2024

SN Bus Econ

View full text Add to dashboard Cite

Non-Performing Loans and Financial Performance of Commercial Banks in Tanzania

Cited by 4 publications

References 1 publication

The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

Influence of Credit Risk Management Practices on Loan Performance: A Case of Selected Microfinance Institutions in Tanzania

Impact of the quality of credit risk management practices on financial performance of commercial banks in Tanzania

Contact Info

Product

Resources

About