文章基本信息

标题：Impact of Credit Risk on Financial Performance: Mediating role of Operational Efficiency in banking Sector of Emerging Economy
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作者：Muhammad Husnain ; Qaisar Maqbool Khan ; Mumtaz Ahmad 等
期刊名称：Sustainable Business and Society in Emerging Economies
印刷版ISSN：2708-2504
电子版ISSN：2708-2172
出版年度：2021
卷号：3
期号：3
DOI：10.26710/sbsee.v3i3.1930
语种：English
出版社：CSRC Publishing
摘要：Purpose: Financial performance of banks is an estimation of how better a company can use its assets for generating profits. Mostly the performance of banks is affected by modernization of financial system, technological advancements and deregulation. The aim of this study is to examine the mediating role of operational efficiency in relationship between credit risk and financial performance of banks. Design/Methodology/Approach: The research sample is 29 banks of Pakistan. Data for the study is collected from the published financial statements of banks ranges from 2011 to 2018. The data analysis technique used in this study is simple mediation analysis in structure equation modeling. Findings: The results reflect that operational efficiency partially significantly and inversely mediates the relationship of credit risk with financial performance. Implications/Originality/Value: One the basis of results it can be suggested that managers need to utilize their deposits carefully and should take more precautionary measures while granting loans. Managers and employees should maintain a better relationship and align their goals with the banks.