Management of bank credit risk and its impact on the cash flow:the case of the commercial bank of the Democratic Republic of Congo.from 2009 to 2016

摘要

This study was conducted at the Commercial Bank of the Congo.This bank is among the banks thathave resisted the threats of bankruptcies and risks in the Congolese environment.It is therefore important to study how the BCDC manages the credit risk for an effective policy.The purposeof the study was to analyze the risk management of bank credits and its impact on cash flow.
　　The documentary analysis on the various financial reports of eight years examined this secondary data.They have been diagnosed and treated.To analyze this data,the study used three groups of ratios.The first group to analyze the risk management of bank credits,the second cash management and the third efficiency.The calculated ROA and ROE cash ratios have shown that the management of BCDC Treasury allows it to deal with threats and risks.DAR,CIR,NIR,and NIER haveshown that the risk management of bank credits helps to cope with these financial commitments.
　　To this end, using a longitudinal study design and a random effects model specification, aPanel finds that the generalized least-squares regression was performed on the data using the Eviews software.The cash ratios were considered as dependent variables and the other ratios asindependent variables.Two estimating models were produced.The study adopted the significance threshold of 5％and two non-directional assumptions ROA and ROE.The results of these two regression models indicated that ROA and ROE do not have the power to predict the risk management effectiveness of bank credits.The study concluded,at a level of significance of 5％,CIR,DAR,NIR,and NIER statistically significant effect on the performance of bank shares.However,the
　　credit risk ratios have statistically negative effects.Credit risk managers should be less concerned with adjustment in CIR, DAR,NIR and NIER ratios.
　　They must optimize the management of credit risk ratios in order to seek the significant effect of ROA and ROE on the performance of CIR and DAR.Future studies should consider longer study periods and more independent variables in order to bring out the true image of the effectthe independent variables on the study-dependent variables.