Symposia & Conferences
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Item The Impact of Credit Risk Management on Performance of Commercial Banks(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Navoda, G.N.; Karunarathne, W.V.A.D.Banking industry is one of the largest sector in current world, with branches and subsidiaries throughout everyone’s life. However, commercial banks are facing risks when they are operating. Credit risk is the one of the significant risk that banks face, considering that granting is one of the main source of income in commercial banks in Sri Lanka. There for the management of the risk related to that credit affect the Performance of the banks. The main purpose of the research is to investigate if there is a relationship between credit risk management and Performance of commercial banks in Sri Lanka. Research model, ROE and ROA are measurement tools of Performance and CAR, NPLR, LR and CIR are defined as tools of credit risk management. The population of this study is 24 commercial banks in Sri Lanka, and 11 commercial banks will be identified as the sample. The analyze has been made the credit risk management and its impact on profitability capacity during 2006 to 2015 (10 years) financial year of commercial banks in Sri Lanka. The research data will be collect from annual reports of sample banks. Correlation and multiple regression analysis are used for analysis. The findings reveal that positive relationship between credit risk management and performance. And also credit risk management is significant impact on performance of commercial banks in Sri Lanka.Item The Relationship between Credit Risk Management and Profitability; Evidence from Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Manike, H.M.S.W.P.; Rathnasiri, U.A.H.A.The banking sector which acts as the backbone of the financial system in Sri Lanka has contributed the country by maintaining an economic growth However, at present banks in Sri Lanka face the problem of credit risk due to deteriorating credit quality. This credit risk management connects with the liquidity as well as profitability and overall risk management of the banks. This study analyzed the impact of credit risk management on profitability of commercial banks in Sri Lanka by using CAMEL model. CAMEL model indicators used to measure credit risk management and model included capital adequacy, asset quality, management efficiency, earning efficiency and liquidity which are influencing to the credit risk management. The study based on secondary data published by commercial banks in Sri Lanka. The sample was 10 banks for 2009 to 2010. Ordinary Least Square (OLS) regression method was used for data analysis. Findings noted that there is a positive relationship between credit risk management and bank performance of commercial banks in Sri Lanka. Further, Capital adequacy, earning efficiency, Liquidity coverage ratio have significant positive relationship with the profitability of commercial banks in Sri Lanka. Asset quality and management efficiency have negative relationship with financial performance of Sri Lankan commercial banks. The study envisaged that these ratios should be improved by the banks for the better performance and CAMEL is a significant tool to analysis of credit risk management.Item Credit Risk Management and Shareholder Value Creation: With Special Reference to Listed Commercial Banks in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, L.A.S.; Morawakage, P.S.The main aim of this study is to investigate the effect of credit risk management on the shareholder value in listed commercial banks in Sri Lanka. The research has used only the secondary data for the purpose of the analysis and the sources of data include the annual reports of selected quoted public banks in Sri Lanka. This study employed return on shares to measure the shareholder value while non-performing ratio, capital adequacy ratio and loans to deposits ratio have been used as the indicators of the credit risk management of the banks. Regression models were employed to do the empirical analysis. Further the output obtained from the SPSS package was used to interpret the findings. The findings reveal that credit risk management has a significant effect on shareholder value in all eight banks. Among the three credit risk management indicators, Non-Performing Loan Ratio (NPLR) has the most significant effect on the return on shares. Through the results of the study, it can be concluded that null hypothesis can be rejected since there is a significant relationship between credit risk management and shareholder value.Item The impact of credit risk management on profitability of commercial banks(Department of Accountancy, University of Kelaniya, 2015) Navoda, G.N.Banks today are the largest financial institutions around the world, with branches and subsidiaries throughout everyone’s life.However, commercial banks are facing risks when they are operating.Credit risk is the one of the significant risk that banks face, considering that granting is one of the main source of income in commercial banks in Sri Lanka.Thereforthe management of the risk related to that credit affect the profitability of the banks. The main purpose of the research is to investigate if there is a relationship between credit risk management and profitability of commercial banks in SriLanka.Also aim to find out if the relationship is stable or fluctuating. In the research model, ROE and ROA are measurement tools of profitability and NPLR and CAR are defind as tools of credit risk management. This study covers 24 commercial banks in Sri Lanka, and 24 commercial banks were identified as the sample. The analyze has been made the credit risk management and its impact on profitability capacity during 2010 to 2014 (04 years) financial year of commercial banks in Sri Lanka.The research data collect from annual reports of sample banks.Correlation and multiple regression analysis are used for analysis. The findings reveal that positive relationship between credit risk management and profitability. And also credit risk management is significant impact on profitability of commercial banks, from 2010 to 2014, the relationships between all the representations are not stable but fluctuating.Item The impact of credit risk management on the performance of banking sector(Department of Accountancy, University of Kelaniya, 2015) Abewardhana, M.A.Credit risk management in banks has become more important not only because of the financial crisis that the industry is experiencing currently, but also a crucial concept which determine banks’ survival, growth and profitability. The aim of this study is to investigate the impact of credit risk management on the performance of banking sector in sir Lanka. Financial reports of seven commercial banking firms were used to analyze for seven years (2005 – 2011). The panel regression model was employed for the estimation of the model. In the model, Return on Equity (ROE) and Return on Asset (ROA) were used as the performance indicators while Non-Performing Loans (NPL) and Capital Adequacy Ratio (CAR) as credit risk management indicators. The findings revealed that credit risk management has a significant impact on the profitability of commercial banks’ in sir Lanka. Banks today are the largest financial institutions around the world, with branches and subsidiaries throughout everyone’s life. Commercial banks are facing risks when they are operating. Credit risk is one of the most significant risks that banks face, considering that granting credit is one of the main sources of income in banks. The management of the risk related to that credit affects the profitability of the banks. The aim of the research is to provide stakeholders with accurate information regarding the credit risk management of banking sector with its impact on profitability.Item Impact of credit risk management on the performance of commercial banks in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Kodithuwakku, S.The adoption of credit risk management is becoming a crucial factor for every commercial bank around the world. The objective of this study is to identify the impact of credit risk management on the performance of the commercial banks in Sri Lanka. This study is primarily based on both primary and secondary data. Primary data were collected from eight (08) commercial banks from 24 commercial banks in Sri Lanka. The sample was selected from the population based on the superior financial performance for the period under review and the availability of the consistent data over the set period. The primary data was collected mainly through an interview. The relevant authorities were interviewed personally in order to have their views on the problems and solutions. The secondary data were obtained from various sources such as Annual Reports of the selected commercial banks, relevant articles, books and magazines etc. The panel data of a five year period from 2009 to 2013 from the selected banks were used to examine the relationship between credit risk and performances. The Return on Assets (ROA) is used as performance indicator and Loan provision to Total (LP/TL), Loan Provision to Non-Performing Loans (LP/NPL), Loan Provision to Total Assets (LP/TA) and Non-Performing Loans/ Total Loans (NPL/TL) were used as indicators of credit risk. Further, a regression model was used to establish the relationship between amounts of loan as well as nonperforming loans and profitability during the period of study by using E-views software. The result shows that non-performing loans and provisions have an adverse impact on the profitability. Therefore, the study recommended the banks to implement an effective tools and techniques to reduce the credit risk management.