An Assessment of the Effect of COVID-19 on Credit Risk Management in Banking Industry: A Case of Selected Commercial Banks in Lusaka, Zambia
Muchemwa Sinkala, Sepo Imasiku, George Mtayachalo, Mwela C. Chanda
Journal of Economics, Management and Trade · pp. 19–28 · Published 17 Jun 2022
10.9734/jemt/2022/v28i730422Abstract
The Corona-virus disease (covid-19) affected most of the industries in the world including the banking industry. The study sought to assess the effect of Covid- 19 on credit management by Commercial Banks. Six commercial banks were sampled out of the total 19 banks operating in Zambia. The study collected primary data using an online-administered questionnaire. The data was analyzed using descriptive statistics and factor analysis. The study found that there an increase in the non performing loans at the beginning of the pandemic. However, the restructuring of these loan by the banks helped to reduce the number of non performing loans. Commercial banks should have a strategy in place to engage with borrowers as soon as they show signs of distress, and any issues should be adequately addressed. Good strategies can only be developed if banks are able to differentiate between viable, non-viable, and viable but distressed debtors at a granular level, grouping borrowers with similar characteristics and resolving them in a comparable way.
References (21)
- 1 Impact of online convenience on mobile banking adoption intention: A moderated mediation approach [DOI]
- 2 Banks and the real economy: An assessment of the research [DOI]
- 3 Counting the Cost of COVID-19 on the Global Tourism Industry [DOI]
- 4 COVID-19 implications for banks: evidence from an emerging economy [DOI]
- 5 Communication strategies to overcome functional and psychological resistance to Internet banking [DOI]
- 6 Resistance of commercial banks to the crisis caused by the COVID-19 pandemic: the case of Poland [DOI]
- 7 The role of social media in internet banking transition during COVID-19 pandemic: Using multiple methods and sources in qualitative research [DOI]
- 8 Behavioral Strategy and the COVID-19 Disruption [DOI]
- 9 Globalization and the Outbreak of COVID-19: An Empirical Analysis [DOI]
- 10 Banking credit restructuring policy amid COVID-19 pandemic in Indonesia [DOI]
- 11 Cultural impact on mobile banking use – A multi-method approach [DOI]
- 12 The COVID‐19 Pandemic and Relationship Banking in Germany: Will Regional Banks Cushion an Economic Decline or is A Banking Crisis Looming? [DOI]
- 13 The People’s bank of China’s response to the coronavirus pandemic: A quantitative assessment [DOI]
- 14 Restaurants and COVID-19: A Focus on Sustainability and Recovery Pathways [DOI]
- 15 The Relationship Between Economic Growth and Banking Sector Development
- 16 The evolution of European economic institutions during the COVID‐19 crisis [DOI]
- 17 Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic [DOI]
- 18 The macroeconomic effects of banking crises: Evidence from the United Kingdom, 1750–1938 [DOI]
- 19 Effects of COVID-19 pandemic on hospitality industry: review of the current situations and a research agenda [DOI]
- 20 COVID-19 and Lockdwon: A Study on the Impact on Mental Health [DOI]
- 21 Banking Sector Performance During the COVID-19 Crisis [DOI]
Cited by 2
M. Rayyan HS, Sugiharso Safuan · Journal of Developing Economies · 2023
Related research
- Corporate Governance Practice, Net Income Growth and Net Profit Margin: Evidence from Selected Commercial Banks in an Emerging Economy in Sub Saharan Africa – Nigeria — shares topic coverage
- Loan Performance for Commercial Banks’ Sustainability: A Systematic Review Following PRISMA Guidelines — shares topic coverage
- A Study on Google Searches in Banking — shares topic coverage
- Impact of Credit Risk Management on the Profitability of Selected Commercial Banks Listed on the Ghana Stock Exchange — shares topic coverage
- Work Life Quality of Agricultural Professionals in Commercial Banks of Kerala — shares topic coverage
Article metrics
Real usage data collected on this platform.
57
Page views
0
PDF downloads
16
Outbound clicks
2
Citations
Views over time
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
Traffic sources
Referring site, by host.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.