Impact of Credit Risk Management on the Profitability of Selected Commercial Banks Listed on the Ghana Stock Exchange
Ernest Somuah Annor, Fredrick Somuah Obeng
Journal of Economics, Management and Trade · pp. 1–10 · Published 11 Jan 2018
10.9734/JEMT/2017/36881Abstract
Effective credit risk management is very important to the health of banks because it has the possibility of either ruining or ensuring the sustenance and growth of the bank. This study assessed the impact of credit risk management on the profitability of 6 selected commercial banks listed on the Ghana stock exchange. Secondary data was gathered from the annual reports of the six selected banks and Ghana banking survey for the years under consideration. The study adopted the Random Effect Model within the panel estimation technique framework. The study used return on equity (ROE) to measure profitability of bank, non-performing loans, loan loss provisions ratio, loan to asset ratio and capital adequacy ratio as credit risk. The findings showed that indeed credit risk management have significant relationship with the profitability of banks. While capital adequacy ratio had positive relationship with a bank’s profitability; non-performing loans, loan loss provisions ratio and loan to asset ratio shows statistically significant negative relationship with the profitability of a bank. The study recommends that banks should assess and manage credit risk indicators vigorously in order reduce their exposure to these risks.
Cited by 12
Jamil Salem Al Zaidanin, Omar Jamil Al Zaidanin · International Journal of Research in Business and Social Science (2147- 4478) · 2021
Habtamu Legass, Hussen Roba · Journal of Finance and Accounting · 2024
Adeshola Olugbenga Olunuga · Management of Organizations: Systematic Research · 2023
M.A.C.N. Shafana · Asian Journal of Economics, Business and Accounting · 2024
John Agbana, Josiah Ayoola Bukoye, Ifeyinwa Chinyere Arinze-Emefo · Open Journal of Business and Management · 2023
Kofi Nkonkonya Mpuangnan, Vivian Akembona Abagna, Oluwatoyin Ayodele Ajani · Science of Law · 2025
Deli Yuan, Md. Abu Issa Gazi, Iman Harymawan · Frontiers in Psychology · 2022
Muhammad M. Ma’aji, Casey Barnett, Saeed Awadh Bin-Nashwan · Journal of Financial Regulation and Compliance · 2025
Theophilus Darko, Samuel Apau, Kwabena Ampong · International Journal of Finance and Banking Research · 2025
James Daniel Chindengwike · Journal of Corporate Finance Management and Banking System · 2022
Related research
- Evaluating the Impact of the GeneXpert Technique on Case Detection and Management of Tuberculosis in Ghana — shares topic coverage
- Impact of Burning E-waste on Soil Physicochemical Properties and Soil Microorganisms — shares topic coverage
- Life Cycle Analysis of Green Roof Implemented in a Global South Low-income Country — shares topic coverage
- Smallholder Farmers’ Vulnerability to Impact of Climate Change in Central Bhutan — shares topic coverage
- Practical Realization of Simultaneous Equations Solutions with Elimination Method and Its Effects on Students Performance in Some Selected Schools in Ekiti and Ondo States of Nigeria — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
12
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
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.