The Impact of Non-Performing Loans on Microfinance in Standard Chartered Banking Essay
Moreover, the negative impact of financial inclusion on non-performing loans of commercial banks is significant in the central region of China, while its impact is large in the eastern and western regions of China. DOI: 10.61426 sjbcm.v10i4. ID: 265171811 CORPORATE CHARACTERISTICS AND NON-PERFORMING LOANS OF MICROFINANCE BANKS IN KENYA article Boye2023FIRMCA, title CORPORATE CHARACTERISTICS AND NON-PERFORMING LOANS OF MICROFINANCE BANKS IN KENYA, author Hussein, 1. Introduction. High levels of non-performing loans, NPLs, in or near default are a common feature of many banking crises. The literature recognizes that high NPLs erode banks' balance sheets, suppress credit growth and slow recovery from crises, Aiyar et al. 2015 Kalemli-Ozcan et al. 2015 Yet microfinance, also called microcredit, is a way to help small business owners and give entrepreneurs access to capital. Often these small and individual businesses do not have access to traditional financial resources from large institutions, making it more difficult for them to access loans, insurance and investments that will help increase their growth. The bank will eventually become insolvent or bankrupt as a result of a credit default. Ombaba 2013 concluded that the ratio of non-performing loans to total loans is the most common. Demand side and analyze the impact of microfinance on customers, this study provides an overview of the. literature based on the supply side, focusing on the performance of microfinance institutions. The. The program has helped make microfinance institutions in the Philippines more sustainable by helping to implement performance standards by government regulatory agencies and those doing business in the microfinance field. These standards promoted legal and ethical practices within the microfinance industry, whose clients are trapped in a gridlock of non-performing NPLs, to the point of creating NPL accounts. of the total volume of classified loans. Improves clients' lives in measurable ways. This article discusses the methodological and data limitations of microfinance impact assessments. The study builds on previous work and takes into account re. Microfinance refers to the provision of financial services to poor and low-income populations, mostly in the global South. Microfinance seems to be a financial issue. of international development. Non-performing NPLs are a major problem in the banking sector. It has played an important role in making profits and the success or failure of banks. The study has examined the effects of non-performing loans on the profitability of commercial banks in Nepal using panel data collected from twelve commercial banks over a period of five years -2014 -2018. The establishment of microfinance institutions is a way to improve the quality of life of the poor Alam et al. 2015. According to Nawai amp Shariff 2013, microfinance covers all procurement of.