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Impact Of Risk Management On Profitability Of Banks

Author

Listed:
  • Shahbaz Bhatti

    (1Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad)

  • Naveed Tariq

    (Department of Business Administration, UAF Sub-Campus Burewala-Vehari.)

  • Muhammad Rizwan

    (Department of Business Administration, UAF Sub-Campus Burewala-Vehari)

  • Muhammad Ajmal

    (Department of Business Administration, UAF Sub-Campus Burewala-Vehari.)

  • Abdul Rehman Aslam

    (Department of Business Administration, UAF Sub-Campus Burewala-Vehari.)

  • Kamran Javed

    (Cotton Research Station, Vehari)

Abstract

Banks today are the biggest budgetary establishments around the globe, with branches and auxiliaries for an amazing duration. In any case, business banks are confronting dangers when they are working. Credit hazard is one of the most critical dangers that banks face, taking into account that conceding credit is one of the fundamental wellsprings of pay in business banks. Subsequently, the administration of the hazard identified with that credit influences the benefit of the banks. The point of the exploration is to furnish partners with precise data in regards to the credit hazards the executives of business keeps money with its effect on benefit. The principle motivation behind the exploration is to research if there is a connection between credit chance administration and productivity of business banks in Europe. We additionally expect to examine if the relationship is steady or fluctuating. In the examination model, ROE and ROA are characterized as intermediaries of gainfulness while NPLR and CAR are characterized as intermediaries of credit chance administration. The exploration gathers information from the bi ggest 3 commercial banks in Pakistan from 2016 to 2018 and formulate hypothesis which are identified with the examination question. A progression of measurable tests are performed so as to test if the relationship exists. Other measurable tests are performed to explore if the relationship is steady or not.

Suggested Citation

  • Shahbaz Bhatti & Naveed Tariq & Muhammad Rizwan & Muhammad Ajmal & Abdul Rehman Aslam & Kamran Javed, 2020. "Impact Of Risk Management On Profitability Of Banks," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 3(3), pages 22-26, March.
    • Handle: RePEc:zib:zbmecj:v:3:y:2019:i:3:p:22-26
    DOI: 10.26480/mecj.03.2019.22.26
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    References listed on IDEAS

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    1. Sanderson Abel & Pierre Le Roux, 2016. "Determinants of Banking Sector Profitability in Zimbabwe," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 845-854.
    2. Short, Brock K., 1979. "The relation between commercial bank profit rates and banking concentration in Canada, Western Europe, and Japan," Journal of Banking & Finance, Elsevier, vol. 3(3), pages 209-219, September.
    3. Gerti Shijaku, 2017. "Does Concentration Matter for Bank Stability? Evidence from the Albanian Banking Sector," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 6(3), pages 67-94.
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