THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA
The objective of this study is to investigate the effect of credit risk management on profitability in private banks in Syria. Two main criteria have been adopted for the management of credit risk in banks: capital adequacy ratio and non-performing loans. In order to achieve the objectives of the re...
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doaj-7ed0b2298ac2479db2bd41c67e100ae12020-11-24T21:32:58ZengUniversity of Oradea Publishing HouseOradea Journal of Business and Economics2501-35992501-35992018-09-01324351THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIAAllam Yousuf0János Felföldi1Károly Ihrig Doctoral School of Management and Business, University of Debrecen, Debrecen, Hungary Logistics Department, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary The objective of this study is to investigate the effect of credit risk management on profitability in private banks in Syria. Two main criteria have been adopted for the management of credit risk in banks: capital adequacy ratio and non-performing loans. In order to achieve the objectives of the research and to test the hypotheses, an appropriate non-probability sample numbering 6 private banks was selected from those private banks in Syria for which financial reports and risk management reports were available sequentially from 2007 until 2011, because the researchers wanted to investigate the relationship between variables within normal conditions not in the light of instability in Syria. Credit risk was measured by the capital adequacy ratio (CAR), and non-performing loans (NPL), whereas profitability was measured by the ROE indicator by calculating the data and financial reports of sampled banks and showing them in a quantitative manner and identifying the relationship between the variables by using the SPSS program to study the correlation and build the regression equation. The study concluded that there is a statistically significant relationship between capital adequacy and profitability, the capital adequacy ratio affects profitability negatively. Non-performing loans do not effect profitability (ROE). In general, credit risk management accounts for 19% of the profitability of banks.http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2018/09/OJBE_32_43-51.pdfCredit risk managementCapital adequacy ratio (CAR)Non-performing loans (NPL)profitabilityReturns on equity (ROE)Private banks in Syria |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Allam Yousuf János Felföldi |
spellingShingle |
Allam Yousuf János Felföldi THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA Oradea Journal of Business and Economics Credit risk management Capital adequacy ratio (CAR) Non-performing loans (NPL) profitability Returns on equity (ROE) Private banks in Syria |
author_facet |
Allam Yousuf János Felföldi |
author_sort |
Allam Yousuf |
title |
THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA |
title_short |
THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA |
title_full |
THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA |
title_fullStr |
THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA |
title_full_unstemmed |
THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA |
title_sort |
effect of credit risk management on profitability: an empirical study of private banks in syria |
publisher |
University of Oradea Publishing House |
series |
Oradea Journal of Business and Economics |
issn |
2501-3599 2501-3599 |
publishDate |
2018-09-01 |
description |
The objective of this study is to investigate the effect of credit risk management on profitability in private banks in Syria. Two main criteria have been adopted for the management of credit risk in banks: capital adequacy ratio and non-performing loans. In order to achieve the objectives of the research and to test the hypotheses, an appropriate non-probability sample numbering 6 private banks was selected from those private banks in Syria for which financial reports and risk management reports were available sequentially from 2007 until 2011, because the researchers wanted to investigate the relationship between variables within normal conditions not in the light of instability in Syria. Credit risk was measured by the capital adequacy ratio (CAR), and non-performing loans (NPL), whereas profitability was measured by the ROE indicator by calculating the data and financial reports of sampled banks and showing them in a quantitative manner and identifying the relationship between the variables by using the SPSS program to study the correlation and build the regression equation. The study concluded that there is a statistically significant relationship between capital adequacy and profitability, the capital adequacy ratio affects profitability negatively. Non-performing loans do not effect profitability (ROE). In general, credit risk management accounts for 19% of the profitability of banks. |
topic |
Credit risk management Capital adequacy ratio (CAR) Non-performing loans (NPL) profitability Returns on equity (ROE) Private banks in Syria |
url |
http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2018/09/OJBE_32_43-51.pdf |
work_keys_str_mv |
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