ASSESSMENT OF LENDING PRACTICE AND CREDIT MANAGEMENT THE CASE OF ZEMEN BANK SHARE COMPANY

Abstract

This research paper presents the assessment of lending practice and credit management in Zemen Bank S.C. the main purpose of this study was to assess the practice of lending and credit management of Zemen Bank as compared to National Bank directives vise a vise its loan policy and procedures. A case study research design of Zemen Bank was employed in this paper. A census method was used for the bank staff and a purposive sampling method in selecting the clients. As the source of data collection questionnaires were used to study and descriptive statistical analysis also used. The participants on the questioner are the bank staffs and some more clients who are directly involved in lending and borrowing activities. The finding of the study shows that there are complaints made by the customers with regards to credit worthiness, impending loan growth and rising loan clients. And, the lengthy of loan processing period affects the overall credit management and the bank needs to improve a better service and improvement the strong follow-up unit devising an office that can control the condition and sanctions at each approval document and establishing coordination among work units. And consequently, the bank should conduct monitoring visit before and after disbursement of the loan, shortening of loan processing, advice customers and give technical support that help to minimize shortening of loan processing. Additionally, the questioner shows that the bank should take an assessment on its lack of man power and internal control system.