Jurnal Attarbiyyah: Jurnal Ilmu Pendidikan Islam
Vol. 2 No. 02 (2022): Feb-Mar 2022

Nexus between Non-Performance Loans and Financial Performance of Commercial Banks Listed at Dse, Tanzania: Ardl Approach

James Daniel Chindengwike (Assistant Lecturer, St. John's University of Tanzania, Dodoma, Tanzania)



Article Info

Publish Date
26 Mar 2022

Abstract

Management of credit risk is serious to the financial viability of commercial banks in both developing and developed countries. Non-performing loans (NPLS) are proxies for credit risk. The study investigated the association between NPLs and the financial performance of Tanzanian commercial banks. The study used a causal research design, with study participants NMB, CRDB MKOMBOZI, MAENDELEO, and DCB recruited by a purposeful selection approach. The research was based on secondary data received from the DSE between 2013 and 2020. Making use of a template collection. Descriptive statistics, a correlation matrix for a link, bound cointegration for a long-run relationship, the granger causal test for a causal association, and an error correction model were employed in the study. According to the study's findings, there is a significant negative relationship between financial performance and NPLs. It. The investigation found that there is a long-run relationship between the factors under consideration and financial performance. Furthermore, a one-way association was established between NPLs and the financial performance of CRDB NMB, MAENDELEO, DCB and MKOMBOZI, the survey found that commercial banks listed on the DSE had a low rate of NPLs. While the issue was interesting, close is an essential to do a complete examination of all Tanzanian banks.

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Journal Info

Abbrev

JCFMBS

Publisher

Subject

Humanities Education

Description

Jurnal At-Tarbiyah: Jurnal Pendidikan Agama Islam (Journal of Islamic Education Studies) merupakan jurnal nasional berpenyunting ahli yang terbit dua kali dalam setahun. Jurnal At-Tarbiyah berbentuk cetak (2460-9439 dengan Nomor SK: 0005.24609439/JI.3.2/SK.ISSN/2015.09 Tanggal 16 September 2015) dan ...