Browsing by Author "Odongo, Gabriel Nyongesa"

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    Asset Quality and the Financial Performance of Commercial Banks in South Sudan
    (EdinBurg, 2023-11) Odongo, Gabriel Nyongesa; Irungu, Anthony Mugetha
    Banks are of great and noteworthy importance in preserving and promoting the advancement of diverse economic sectors, making them crucial components of the economy. They shift the resources' attention from areas with surpluses to those with deficits. However, majority of nations have encountered banking issues that have necessitated significant banking system reforms. The issues are primarily the result of domestic factors including poor banking supervision, ineffective management, and insufficient capital. Making sure companies participating in the sector are managed prudently is a crucial aspect of bank regulation. The primary aim of this study was to determine the effect of asset quality and the financial performance of commercial banks in South Sudan. An explanatory research design was used in the study. The target populace was commercial banks in South Sudan. There were 29 commercial banks that existed in South Sudan between 2017 and 2021. The study used purposive sampling to sample 23 banks that were in operation between 2017 and 2021. Secondary information was used in the study. For analysis, the obtained information was cleaned and imported into STATA 17. Descriptive statistics and regression analysis was conducted. The inferential statistics used were correlation and regression. Descriptive outcomes showed that the mean asset quality ratio from 2017 to 2021 for the commercial banks in South Sudan was 0.262, with the least asset quality ratio being 0.622 and the most being 4.395. Trend outcomes were clear that asset quality was inconsistent amongst South Sudan commercial banks. Outcomes were clear that asset quality negatively but significantly impacted by the performance. The study concluded that asset quality had a negative and noteworthy impression on financial success. As a result, the report advises banks to refrain from holding too many loans relative to their overall assets, as this reduces liquidity and negatively impacts the bank's ability to operate. The study suggests that banks implement appropriate credit risk management procedures. This is because inadequate credit risk management procedures lead to a large percentage of nonperforming loans, which eventually have a negative impact on commercial banks' profitability.
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    Liquidity Risks and Financial Performance of Commercial Banks in South Sudan
    (Kenyatta University, 2024-03) Odongo, Gabriel Nyongesa
    Banks play a dynamic role in preserving and promoting the growth of economic sectors, making them crucial components of the economy. They shift resources' attention from areas with surpluses to those with deficits. However, nations have encountered banking issues that have necessitated significant banking system reforms. Commercial banks in South Sudan have shown deteriorating financial performance in the period 2017 to 2021. This has been shown by the substantial number of commercial banks making losses and with the profit making ones exhibiting fluctuating performance as well as reducing financial performance levels. For example, only 25% of the commercial banks made profit in the year 2021 with the majority making losses. Further, the sector has made losses for the last five years. For example, Liberty Commercial Bank recorded a decline in return in assets from 0.58 in 2018 to 0.53 in 2019 and a further decline to 0.51 in the year 2020. The aim of this study primary was to determine the effect of liquidity risks and the financial performance of commercial banks in South Sudan. The precise purposes were to; ascertain how liquidity reserve, asset quality, liquidity adequacy and operational efficiency impacted South Sudan's commercial banks' financial performance. The study was informed by liquidity preference theory, shift ability theory and commercial loan theory. A design for explanatory research was used in the study. The target populace was commercial banks in South Sudan .There were 29 commercial banks that existed in South Sudan between 2017 and 2021. The study used purposive sampling to sample 23 banks that were in operation between 2017 and 2021. Secondary information was used in the study. For analysis, the obtained information was cleaned and imported into STATA 17. Descriptive statistics and regression analysis was conducted. The inferential statistics used were correlation and regression. The ratios for financial performance and the percentages for the predictor factors served as the basis for the analysis. The exams included model specification test, multicollinearity, heteroskedasticity, normality as well as heteroskedasticity. Before beginning data collecting, the researcher received work authorization from Kenyatta University and National Commission For Science, Technology & Innovation (NACOSTI). The researcher provided informed consent for all tests that were subjected. The researcher acted professionally, discretely, and honestly to ensure that the information provided was only used for its intended purpose. The outcomes showed that liquidity reserve and asset quality had a negative and unnoteworthy impression on financial success. The outcomes also showed that operational efficiency and liquidity adequacy was seen to have a positive and noteworthy impression on financial success. The study further concluded that the financial performance of commercial banks is hampered by high non-performing loans. Loan loss provisions, loan advances, and non-performing loans were used to assess asset quality. Commercial banks that are efficient can deploy and utilize their resources in a way that best suits the demands of their businesses. The study notes that though liquid assets attract some returns to commercial banks, too much of it depletes the profitability level of banks. The management of banks must establish guidelines and practices that foster a high degree of operational effectiveness. Banks can increase operational efficiency by investing in financial technologies. These findings suggest that bank management needs to pay close attention to, monitor, and guarantee increased operational efficiency. To safeguard investors' interests, the regulator should make sure that operational efficiency regulations and prudential principles are followed. The study recommends that banks ought to refrain from holding too many loans relative to their overall assets, as this reduces liquidity and negatively impacts the bank's ability to operate.