Browsing by Author "Keregero, Chirongo M."

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    A theoretical framework for simulating systemic risk and its application to analysis of the banking system
    (Informa UK Limited, 2021) Keregero, Chirongo M.; David McMillan
    Risk of basic defaults and contagious defaults are two main sources of bank systemic risk. In this paper, a theoretical framework is proposed to classify the time evolution of the basic defaults and contagious defaults using sequences of daily financial data. The new theoretical framework combines an existing asset value estimation algorithm and obligation clearing algorithm to calculate the time evolution of systemic risk. The asset value estimation algorithm is used to estimate the asset values of the banks each day and the obligation clearing algorithm is used to calculate systemic risk given the tuples of data each day. This framework is applied to assess the systemic risk of the Nigerian banking system between 2008 and 2014 when the economy was hit by the financial meltdown. The main findings depict that the risk of the basic defaults was high during this period while contagious default seldom appeared. It is also found that the Nigerian banking system was more stable in 2010 and 2012 than in other years, while it was seriously unstable in 2008, 2011, and 2014. The findings would assist in monitoring systemic risk in the Nigerian banking system.
  • Thumbnail Image
    Item
    Impact of the quality of credit risk management practices on financial performance of commercial banks in Tanzania
    (Springer Science and Business Media LLC, 2024) Temba, Grace I.; Kasoga, Pendo S.; Keregero, Chirongo M.
    Commercial banks’ roles in economic development make it paramount for their sustainable financial performance, hence a need for effective credit risk management as credits are the main source of revenue creation, yet are the main threat to the bank’s asset quality and, if not effectively managed, will jeopardize performance. The study investigated the influence of the quality of credit risk management practices on the financial performance of commercial banks in Tanzania. Balanced panel data of fifteen commercial banks with 255 observations from 2003 to 2019 have been used for the analysis. Results revealed that risk assessment and approval, the quality of credit processes and controls, adequacy of the recovery process, and risk supervision & monitoring positively influence banks’ performance through their capital adequacy, efficient use of equity and asset quality, respectively. Further, banks’ earning ability and liquidity are negatively affected by risk assessment and approval as well as risk supervision and monitoring. The study recommends that credit risk management practices be central to bank operations due to their positive effect on financial performance. However, caution should be taken and strike a balance on mix and concertation in the facilitation of all studied variables, as credit risk assessment & approval and credit risk monitoring and supervision negatively affect banks’ liquidity.