Effect of Banking Risk Management on the Profitability of Listed Commercial Banks in Rwanda (2015-2020) by Victoire Gakusi Reg No: Mba/af/ms/21/05/6659
Quantitative analysis reveals credit and operational risks significantly reduce profitability in Rwandan banks, suggesting a need for improved risk practices.
Key Points
Effective risk management practices significantly enhance the profitability of listed commercial banks in Rwanda.
Quantitative analysis shows a negative correlation between credit risk and return on assets (ROA), indicating reduced profitability.
Liquidity risk negatively impacts profitability, though its correlation is not statistically significant in this context.
Operational risk exhibits a significant negative influence on profitability, reinforcing the crucial role of risk management.