Determinants of Non-performing Loans in Commercial Banks in Kenya | Chapter 4 | An Overview on Business, Management and Economics Research Vol. 5

 This division focuses on assessment of cause of non-performing loans (NPLs) in commercial banks in Kenya. A loan is top-secret as nonperforming loan when the borrower forsakes to make due payments of principal or interest for a period of 90 to 180 days. In Kenya, the flow of NPLs increased during the whole of the 1990s and prior age, causing many banks to fail and so forth to be established under statutory project. The survivor banks and those founded afterward discovered that incompetent loan management was a big cause of the severe blow. While the borrowers are to blame, the administration of the collapsed organizations must share the blame for adopting poor loaning policies, as several needed smart new techniques of directing NPLs. However, improved credit risk administration has reversed the trend of NPLs. Nonetheless, the percentages of gross NPLs to gross loans wait high, conceivably leading to the collapse of more banks. The study's aims search out determine whether risk appraisal methods, the level of borrowers' lack of knowledge of items being provided, risk management methods, business-related conditions, and mechanics obsolescence all influence NPLs. To achieve these goals, basic data was assembled by distributing questionnaires to credit separation staff at chosen banks. The news was examined and presented in tables using the mathematical method of spearman's correlation cooperative. The findings disclosed that, of the five components judged, risk assessment methods had the maximal correlation cooperative, making them the basic contributor to NPLs, followed by borrowers' lack of knowledge of the products being presented, while risk management plans had the smallest contribution. The judgments will give bank administration increased information on credit risk exposure and NPL control, developing in increased appropriateness.

Author(s) Details:

Irene Njeri Esther,
Department of Business and Management Science, Taita Taveta University, P.O. Box 635-80300, VOI, Kenya.

Please see the link here: https://stm.bookpi.org/AOBMER-V5/article/view/12425

Credit Analysis for Libyan Commercial Banks: A Case Study of Sahara Bank | Chapter 14 | Insights into Economics and Management Vol. 10

 Despite significant progress in many countries, as measured by commercial bank progress and development. This investigation and evaluation of its credit activities became critical in order to ensure the organization's quality and effectiveness. Credit, on the other hand, is one of the most important tasks, ensuring the importance of assessment. The study's goal is to investigate and analyze credit banking as it is practiced at one of Libya's commercial banks (Sahara Bank). Commercial banks simply do not abandon their role as a financial intermediary, allocating funds. financial resources to meet a variety of demands in order to make a profit The study's main findings were as follows: a) the lower the risk index of nonpayment for loans and burdens, and the lower the safety margins to meet the risk of the loans. b) Despite the importance of measuring the cost of each revenue activity separately to ensure its efficiency and to keep track of any problems that may arise and affect its profitability, the accounting system used does not provide data and information on the costs of each revenue activity. The Sahara Bank's most important recommendations include risk lending evaluation in order to provide meaningful periodic information and effectively. establishing an accounting system, as well as the need to provide competent human cadres on a scientific and practical basis

Author (s) Details

Munir Ali Husien
School of Economics & Management, Beihang University, China.

Han Liyan
School of Economics & Management, Beihang University, China.

View Book :- https://stm.bookpi.org/IEAM-V10/article/view/1476

Investigating the Equality of Customer Loyalty between Two Commercial Banks in Anambra State, Nigeria: Hotelling T-square Approach | Chapter 2 | Current Strategies in Economics and Management Vol.5

Aims: This study examined the equality of customer loyalty between two Banks in Anambra State, Nigeria. The objective of this study was to determine if there exists significant difference between loyalties of customers in two commercial banks in Anambra State.  Methodology: The data used for this study was primary data collected through the aid of administered questionnaire. The statistical tool used in analyzing the data was the permutation method for Hotelling T-Square.  Results: The result of the analysis found a test value of 1.03 and a corresponding p-value of 0.43 which indicates that there is no significant difference between customer loyalties of the two commercial banks. This result could be attributed to the improved supervision of the apex bank in Nigeria (Central Bank of Nigeria) on the activities and operation of the banking sector. Since, customer loyalty can help firms develop strategies to grow the right customers and in turn customers can be viewed in terms of their lifetime value.  Conclusion: Based on the outcome of this study, studies on determining the retention and lifetime value of commercial banking customers in Nigeria is recommended as a fruitful area for future research, for it appears that the banking industry is one of the most profitable within the Nigerian economy, hence, higher performance could be attained in terms of customer retention and loyalty thereby creating wealth to her shareholders and rendition of social obligations to the larger society.

Author(s) Details

C. O. Aronu
Department of Statistics, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria

G. O. Ekwueme
Department of Industrial Production Engineering, Nnamdi Azikiwe University, Awka, Nigeria.

J. O. Emunefe
Department of General Studies, Mathematics and Statistics Unit, Petroleum Training Institute, Effurun, Nigeria

View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/199