Assessment of credit risk management practice (In the case of NIB International Bank S.Co)
Year: 2025
Type: article
Abstract: Credit Risk Management becomes major discussion issues in the financial institutions because of uncertainty related to borrowers’ business. This study of Credit Risk Management is attempted to assess practices related to credit risk management in Nib International Bank. Thus, the rationale behind for undertaking this study was to assess credit risk management techniques and tools that are being used and how Nib international Bank implements those techniques, policies and procedures, as well as, to know how the bank identify, measure, monitor, evaluate and control credit risk and to suggest possible solutions. The study design was descriptive in which quantitative and qualitative datasets were mixed to describe the state of affair. To this effect, primary data survey data (using questionnaire. Eighty eight samples were involved using stratified random sampling at branches. The researcher organized and analyzed the collected data by SPSS-23. From the findings it is concluded that the bank has well organized credit policy and good credit granting practice and used suitable credit risk assessment tools and techniques and credit risk management practice. However, the bank has some pitfalls like rigidity on the Bank’s credit policy and process. Thus, it is recommend that Nib International Bank should simplify and review its credit manual, policy and procedure as well as ensure its implementation to become more competitive in the banking industry and meet customer expectation.. Finally, the study may provide a possible opportunity to all stake holders to gain deep knowledge about the banks credit management practice and have important practical implications for the bank regulators authorities and policy makers of the bank.
DOI: 10.20372/nadre:19016
Author: Tejineh Teshome
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7082630294
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