Asset Management and Profitability: A Commercial Bank
Thapa, Suvash (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025121435987
https://urn.fi/URN:NBN:fi:amk-2025121435987
Tiivistelmä
Asset management is an influential strategy for banking success. However, there are only a few studies on the issue in Nepal. Therefore, the present study aims to investigate the role of asset management for the profitability of Nepalese commercial banks. The study employed an inductive approach and a qualitative research strategy, drawing on subjectivist and interpretivist philosophies. Two bank executives were interviewed via Microsoft Teams and Forms from the case company. Finally, the data was analyzed using content analysis to identify patterns in the qualitative data.
The findings reveal that the most influential assets in commercial banks are loans and advances, but they also carry substantial credit risks. In addition, government securities and cash reserves have gained popularity for their safety and liquidity. Additionally, digital tools have been found to improve asset performance monitoring and facilitate faster decision-making, leading to better risk control and higher profitability. The study contributes to the resource-based view by showing that digitalization enhances the value and uniqueness of resources, thereby improving market competitiveness.
The study indicates that managers should focus on improving asset quality, leveraging digital tools for lending to SMEs, and monitoring non-performing loans. Furthermore, the government should take the initiative to build a digital infrastructure for a sustainable banking sector in Nepal.
The findings reveal that the most influential assets in commercial banks are loans and advances, but they also carry substantial credit risks. In addition, government securities and cash reserves have gained popularity for their safety and liquidity. Additionally, digital tools have been found to improve asset performance monitoring and facilitate faster decision-making, leading to better risk control and higher profitability. The study contributes to the resource-based view by showing that digitalization enhances the value and uniqueness of resources, thereby improving market competitiveness.
The study indicates that managers should focus on improving asset quality, leveraging digital tools for lending to SMEs, and monitoring non-performing loans. Furthermore, the government should take the initiative to build a digital infrastructure for a sustainable banking sector in Nepal.