| Abstract: | Credit risk management has become an important topic for financial institutes, especially
since the business sector of financial services is related to conditions of uncertainty. The
management of Credit risk generally includes setting out authority and responsibility
clearly, developing and applying appropriate Credit risk strategy, policy and procedures:
proper understanding and identification of risk: sound Credit granting process: credit
administration, monitoring and reporting process and finally Credit risk control along with
determining the method and frequency of reviewing Credit policies and procedures (Basel
Committee on Banking Supervision, 2006).Consequently, this research looks at the Credit
Risk management practice of united bank s.c. The research objective is formulated in order
to gain a better understanding of credit risk management practices of united banks.c.
Quantitative research approach and descriptive research design is employed under the
quantitative research design survey method is used. The data were collected by
questionnaire survey method and the total population of those involved in credit and credit
related activities were 126, but those who are convenient for the study were taken and 92
questionnaires were distributed, but only 69 of them, 75% were returned. From the survey
result establishing appropriate credit risk environment is found to be very important for the
well-being of the bank. In general, the mean value of the four credit risk management
perspectives, it is found that there is a good/high and positive credit risk management
practice with in united bank s.cHence, saying it is good on a measurement scale doesn’t
mean it’s absolute, there are certain things that the respondents doesn’t agree with, and I
also believed to be corrected immediately. For instance the credit related information and
processing activity of the bank should be further improved, otherwise they will increase the
risk exposure of the bank. |
