How Banks Can Leverage Credit Risk Evaluation to Improve Financial Performance

The research aims to examine the impact of credit risk evaluation on financial performance American and European commercial banks during period 2017-2021. A set 37 were selected represent entire banking industry those two continents. To measure this relationship, mathematical models created. Research has revealed that influences as represented by ROE ROA. study also concludes indicators analyzed in have a substantial effect banks. suggests enhance their generate more profits. It cites non-performing loans or gross loans, provision for facilities loss/net facilities, well leverage ratio significant determining evaluation. Banks must put together strategies will not only limit banks’ exposure risk, but performance, competitiveness. Further can be conducted developing nations understand such economies.