| Abstract: | Credit Risk management becomes major discussion issues in the financial institutions
because of uncertainty related to borrower’s business. The aim of this study is to assess
credit risk management on how identify measure, monitor, evaluate and control of credit
risk and to what extent the current performance of the bank is supported by proper credit
policy, procedure and strategy. The study design is descriptive. The research applies
quantitative research method and both primary data (questionnaire) and secondary data
were collected to meet the objective of the study. 121 samples were involved at head
office and branches who works on credit to get reliable and valid information about the
study subject. The data was analyzed using descriptive statistics technique and frequency,
percentage, table mean standard deviation, pie chart and graph used to analyzed and
present data. From the findings the study concludes that the bank has well organized
credit policy that counter to credit risk they are exposed and techniques including loan
follow-up, risk identification, measuring, evaluating, monitoring and controlling
mechanism. However, the study also concluded that the bank has pitfalls such as absence
of independent credit risk management policy and procedure, absence of training for
customers which results to loan diversion that predict the risk level of the business and
the priority sectors of the bank in terms of credit facility are highly exposed to credit risk
which directly contribute to the increment of NPL. Thus, it is recommended that Nib
international bank should develop independent risk management policy and procedure
from credit policy and procedure to overcome those problems and to take measure on the
spot |
