Research Article
The Impact of Credit Risk Management on Financial Performance of Commercial Banks in Ethiopia
Habtamu Alebachew Legass*
,
Hussen Abdulkadir Roba
Issue:
Volume 12, Issue 6, December 2024
Pages:
142-155
Received:
5 October 2024
Accepted:
29 October 2024
Published:
29 November 2024
Abstract: This study delves into the intricate relationship between credit risk management strategies and the financial performance of commercial banks in Ethiopia. By analyzing data from 14 banks over a span of 13 years (2011-2023) using correlation and regression analyses in E-Views 12 software, the research sheds light on the impact of key indicators such as credit interest income ratio, loan to total deposit ratio, and loan to total asset ratio on financial outcomes. The findings reveal that while certain metrics positively influence financial performance, such as credit interest income and loan ratios, the presence of nonperforming loans exerts a negative impact on bank profitability, emphasizing the critical need for effective management of credit risks to ensure sustained financial health. In light of these results, it is recommended that Ethiopian commercial banks prioritize the enhancement of credit risk management practices, with a specific focus on strategies to address nonperforming loans. Strengthening credit analysis frameworks and refining loan administration processes are crucial steps towards safeguarding profitability and bolstering long-term stability within the banking sector. Policymakers and industry stakeholders are encouraged to collaborate in developing and implementing robust risk management frameworks that not only protect the financial viability of commercial banks but also contribute to the resilience and growth of the broader financial landscape in Ethiopia.
Abstract: This study delves into the intricate relationship between credit risk management strategies and the financial performance of commercial banks in Ethiopia. By analyzing data from 14 banks over a span of 13 years (2011-2023) using correlation and regression analyses in E-Views 12 software, the research sheds light on the impact of key indicators such...
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Research Article
Impact of Customer Relationship Management on Client Satisfaction at the Banking Industry in Chattogram
Tahita Akter,
Shakil Ahmad*
Issue:
Volume 12, Issue 6, December 2024
Pages:
156-164
Received:
29 October 2024
Accepted:
13 November 2024
Published:
3 December 2024
Abstract: This study investigates the impact of Customer Relationship Management (CRM) practices on Customer Satisfaction (CS) in the banking sector of Chattogram, Bangladesh. Focusing on three primary CRM constructs—Service Quality (SQ), Handling Complaints (HC) and Employee Behavior (EB)—the research aims to identify which factors most significantly influence customer satisfaction. Using a sample of 108 respondents obtained through convenience sampling, the study employs quantitative analysis via Statistical Package for Social Sciences (SPSS) to analyze the relationships between these CRM elements and customer satisfaction levels. The descriptive statistics indicate high mean scores for all CRM constructs, suggesting generally positive customer perceptions. The results demonstrate that complaints handling has the strongest positive impact on customer satisfaction, followed closely by service quality, while employee behavior has a moderate effect. Based on these findings, key recommendations for banks include enhancing complaints resolution processes, standardizing service quality and investing in CRM technology to optimize customer interaction management. This study underscores the importance of effective CRM practices in improving customer satisfaction within Chattogram’s banking sector and provides actionable insights for banks aiming to strengthen customer relationships and enhance satisfaction outcomes. The findings contribute to the growing body of CRM literature and provide valuable guidance for banks looking to refine their customer-centric strategies in a competitive market environment.
Abstract: This study investigates the impact of Customer Relationship Management (CRM) practices on Customer Satisfaction (CS) in the banking sector of Chattogram, Bangladesh. Focusing on three primary CRM constructs—Service Quality (SQ), Handling Complaints (HC) and Employee Behavior (EB)—the research aims to identify which factors most significantly influe...
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