ASSESSMENT OF CREDIT RISK MANAGEMENT PRACTICE IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The paper is about “Assessment of credit risk management practice of Commercial Bank of Ethiopia”. The number of respondents was fifty five. While collecting the requisite data five points Likert Scale, open ended and closed ended questioner and interview has been used. The objective of the study was to critically asses the strategic attention and consideration given for credit risk management practice in CBE, review the credit risk management process and techniques of CBE and explore the considerations given to human resource skill Variety in order to successfully manage credit risk. Simple descriptive statics was applied to analyze respondent’s information. From the analysis it was found that board of directors and management of Commercial Bank of Ethiopia exercise their power properly to oversight credit risk management, update with the current credit risk management trend, applied combination of different risk management techniques and has competent employees. In addition the result shows Commercial Bank Ethiopia identifies assesse and analyzes monitor and evaluate credit risk throughout the processes. As a conclusion the researcher recommends that Commercial Bank of Ethiopia should assess credit risk as appropriate, monitor and evaluate its credit risk management practice to have lesson learned and communicate as appropriate for a sound decision ultimately to minimize credit risk possibilities.