The Impact of Credit Risk Management on Nonperforming Loans and Bank Financial Performance: Evidence from the Pakistani Banking Sector

Authors

  • Sidra Attique Khwaja Fareed University of Engineering & IT, Rahim Yar Khan Author
  • A.Rasheed Khwaja Fareed University of Engineering & IT, Rahim Yar Khan Author
  • Farzana Emerson University Multan Author

Abstract

As the credit crisis affects Pakistan's banking industry, the study intends to examine the influence of credit risk management on commercial banks' financial performance and nonperforming loans. The study used a deductive research strategy to target 20 commercial banks, all with data covering 10 years from 2011 to 2020, and using a secondary data regression analysis model. Findings, The ROA, ADR, and CAR of private commercial banks were significantly higher than state-owned commercial banks. NPL has a statistically significant effect on ROA.

Keywords: CRM, FP, Nonperforming Loan; Commercial Banks

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Published

2026-02-27

Issue

Vol. 1 No. 1 (2024)

Section

Articles

License

Copyright (c) 2024 Innovative Journal of Business and Economics Strategy (IJBES)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

The Impact of Credit Risk Management on Nonperforming Loans and Bank Financial Performance: Evidence from the Pakistani Banking Sector. (2026). Innovative Journal of Business and Economics Strategy (IJBES), 1(1), 70-83. https://www.ijbes.com/index.php/ijbes/article/view/24