ASSESSMENT OF CREDIT RISK MANAGEMENT IN NIB INTERNATIONAL BANK S.C

Abstract

This study is about assessing Credit risk management of Nib international Bank S.C to achieve the intended objective of the study, Descriptive research was employed. Purposive sampling techniques were used to focus on limited number of informants who have deep insight about the issue. Accordingly, the size of the sample ware 143 which include all city Branch Managers and loan officers, credit analysts, Follow-up officer Customer Relationship Manager and Controllers of the bank. Questionnaires and interview were used as a primary data gathering instrument while annual reports and information from book of account were used as an instrument to gather secondary data relevant for the study. Descriptive statistics was used to analyze the data. Accordingly, the research found out that, credit risk policy and strategy of the bank is not renewed timely, the bank has no procedure to detect borrows associated with crime, internal risk rating system is not utilized to total portfolio and value and existence of collateral is not checked periodically Based on the findings the research suggest that, the bank should review its credit risk management strategy and policy periodically, develop policy enable to identify borrowers associated with crime and adjust its Management Information system in a manner it provide adequate information for decision makers.