信用风险、资本充足率和银行业绩外文文献.pdf

Credit Risk, Capital Adequacy and Bank’s Performance: An Empirical Evidence from Pakistan 27 Credit Risk, Capital Adequacy and Bank’s Performance: An Empirical Evidence from Pakistan Maryam Mushtaq*, Aisha Ismail**, Rahila Hanif*** Abstract Banks need to have adequate capital as a cushion to absorb losses caused by different risk and to increase Credit risk is one of the major risks in banking operations nowadays. the depositors’ trust on banks and ultimately profitability For sustainable financial performance, credit risk management is of the banks (Olalekan and Adeyinka, 2013). But of crucial importance. Non-performing loans are the major element maintaining capital adequacy ratio above an optimum of credit risk that negatively affects the banking performance. To level can harm the profitability (Poudel, 2012). Capital cater such risk, banks have to maintain certain percentage of adequacy not only improves the performance of banks but capital as cushion with central bank as per BASEL requirements. also used as credit risk mitigation technique (Ogboi and Efficient credit risk management contributes positively towards Unuafe, 2013)Finance and Banking/secondary-title/ banking profitability. This study aims to investigate; how credit titlesperiodicalfull-titleJournal of Emerging risk and capital adequacy affects the performance of commercial