ASSESMENT OF CREDIT RISK MANAGEMENT IN NIB INTERNATIONAL BANK OF WOLKITE BRANCH

Abstract

This study was conducted to assess the credit risk management in NIB international bank (in case of Wolkite branch). To accomplish the paper both primary and secondary sources of data were used. The primary data were gathered using a questionnaire distributed to the employees of the bank and an unstructured interview was conducted with the branch manager. From a total population of 60 employees in the bank, the researcher selected 25 respondents as sample size. The researcher used personal judgmental sampling technique, because in judgmental sampling the researcher is more confidential in selecting respondents which are near to the needed accurate and sufficient information. The data gathered was analyzed and interpreted by using descriptive statistical methods like percentage, ratios, and tables. Based on the findings of the study, the bank is using credit appraisal procedures & with regard to risk management strategies the bank follows some risk management strategies like credit analysis, collateral security, feasibility study & market study. The institution with regarding the repayment the customer could enable them for more or less to repay portion their loans monthly and even if the credit is not collected with specified period, the institution must be giving them discounting and having strict follow up for those customer which do not pay on time.