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|Title:||Credit Risk Management on Commercial Bank Performance in Zimbabwe|
|Keywords:||credit risk management|
|Publisher:||Lupane State University|
|Abstract:||This study attempts to determine the impact of credit risk management, non-performing loans on the performance of commercial banks in Zimbabwe. In the study, the whole population of 13 banks were examined for the period 2012 to 2016. Secondary data was used and both qualitative and quantitative techniques were taken into consideration. Annual reports, financial statements, press statements and monetary statements were fully utilized. The statistical package for social sciences was used for regression purposes. The study established that non-performing loans are a major cause of failure in the Zimbabwean banking sector, hence the need for sound and effective credit risk management policies. According to the study findings, poor credit risk management policies fuel the level of non-performing loans significantly, due to such an outcome bank performance decreases and this creates a platform for financial distress in most Zimbabwean commercial banks. Therefore, the study results suggest that commercial banks consistently review their credit policies so as to adjust the ever-changing environment, especially taking into account the multi-currency regime. Powerful and useful recommendations were also given to those who are policy makers in undertaking such decisions and policies that may positively influence performance of banks there by improving the performance of the whole banking sector. The study recommends commercial banks to create and implement sound credit risk management so as to improve their performance.|
|Appears in Collections:||Department of Accounting and Finance|
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