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Effects of Risk Management Strategies on Financial Performance of Commercial Banks. A Case of ZSE Listed Zimbabwe Commercial Banks

Garikai Muzondo, Vigil Gwaze, Ireen Nkomo

Abstract

PURPOSE - The aim of the study was to determine the effects of risk management strategies on the performance of commercial banks in Zimbabwe METHODOLOGY- Study utilized a descriptive research, Quantitative and qualitative research were combined in this study. The target population of the study includes all 1365 employees of the seven listed ZSE commercial banks operating in Bulawayo. The study utilised Slovin`s formula to determine the sample size (309). Sample size was chosen using a non- probability sampling technique called judgmental sampling. The multiple regression model was the main tool that was used to attain the main objective of this study. FINDINGS – The results of the regression analysis affirm the critical role of credit scoring, hedging, and liquidity buffers in enhancing the financial performance of commercial banks RECOMMENDATIONS – the study recommended Enhance Credit Scoring Mechanisms, Strengthen Hedging Strategies, Maintain Adequate Liquidity Buffers and Integrate Risk Management into Strategic Planning.

References

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