ASSESSMENT OF CREDIT RISK MANAGEMENT( in case of commercial bank of ethiopia in bekur branch)

Abstract

Credit risk management is a very essential model for any financial institution. Since most of the financial decisions revolve around the corporate case of holding risk, this management is particularly important to banks since credit risk constitutes their core by business process. This study was conducted with aim of assessing credit risk management of commercial bank of Ethiopia in bekur branch This study used descriptive study because the aim was to describe the prevailing credit risk management. Only primary data were used to get sufficient information about the bank’s credit risk management The primary data was gathered in the form of questionnaire distributed to respondents from 26 total employees of the bank. The researcher employed census method because the respondent would be minimum and the researcher used both quantitative (percentage) and qualitative data analysis (narration) method and the other descriptive statistics by applying statistical package for social scientist and tables. Collected data and interpret, Results of this study revealed that though the bank is average in its credit risk management, some employees are found to lack the required skill evaluate credits and unaware about the bank’s credit policies and procedures. Based on the results revealed, the researcher recommended the branch to arrange continuous training for its employees and fill the knowledge and skill gaps and improve its profitability.