Financial Risk & Financial Performance: A Critical Analysis of Commercial Banks Listed in Rwanda Stock Exchange

Dr. Vidhya K; Dr. Neelam Maurya; Dr. Umamaheswari K

Title:
Financial Risk & Financial Performance: A Critical Analysis of Commercial Banks Listed in Rwanda Stock Exchange

Authors:
Dr. Umamaheswari K | Dr. Vidhya K | Dr. Neelam Maurya

Cite This Article :

Dr. Umamaheswari K | Dr. Vidhya K | Dr. Neelam Maurya "Financial Risk & Financial Performance: A Critical Analysis of Commercial Banks Listed in Rwanda Stock Exchange" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-4, June 2022, pp.1187-1198, URL: https://www.ijtsrd.com/papers/ijtsrd50288.pdf

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Abstract :
Regardless developed or developing, banking sector serves as the spine of the economy of a country. Financial risks played a major role in the global banking crisis which occurred in the past decades. After which financial risks remained a major topic of interest globally. This in turn threatens their financial viability. The country’s banking sector is vulnerable to risks whether it is financial or non-financial. This made it essential to include operational risk as area of study along with other financial risks as the risk cannot be ignored. This study therefore, investigated the effect of financial risk on financial performance of commercial banks listed in Rwanda Stock Exchange. The study used financial distress theory, interest rate parity theory, shift ability theory and stewardship theory Descriptive research design is used in the study. Target population of the study constituted all the banks listed in Rwanda Stock Exchange. The study used random panel technique for panelling data for the period of 2008 to 2019. Data was analysed through the use of descriptive statistics and multiple linear regression analysis. From table 4.12 of coefficients, solvency risk amongst the sub variables was highly influenced by financial performance which reported a t-value of 3.188 hence the most significant.

Keywords :
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Publication Details:

Unique Identification Number : IJTSRD50288

Published In : Volume-6 | Issue-4, June 2022

Page Number(s) : 1187-1198

Publisher Name : IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470

Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

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