International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

Impact of Risk Management on Non-Performing Loans and Profitability of Banking Sector of Pakistan
Shahbaz Haneef, Tabassum Riaz, Muhammad Ramzan, Mansoor Ali Rana, Hafiz Muhammad Ishaq, Yasir Karim

The aim of this study is to investigate the impact of risk management on non- performing loan and profitability of banking sector of Pakistan. Five banks were selected for data collection and whole data was secondary in nature. The result of this study reveals that there is no proper mechanism for risk management in banking sector of Pakistan. Study also concluded that non-performing loans are increasing due to lack of risk management which threatens the profitability of banks. This study provides suggestion that banking sector can avoid their non-performing loans by adopting methods suggested by state bank of Pakistan.

Full Text: PDF