Credit Risk Management and Organizational Performance at Commercial Banking Sector in Palestine
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This study implemented an empirical investigation for the relationship between credit risk management and profitability of commercial banks in Palestine over the period of 7 years (2008-2014), eleven commercial banks were selected. The financial theory was employed to create the research model; Return on Asset (ROA) and Return on Equity (ROE) are defined as proxies of profitability while capital adequacy (EQTA), credit monitoring (LLPI) and income diversification (NIDR) are defined as proxies of credit risk management. Panel model analysis was used to estimate the determination of the profit function. Results revealed that the credit risk management does have significant effect on the both ROA and ROE. While EQTA has an negative insignificant effect on ROA. However, the relationships between all the proxies are fluctuated.
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