Abstract:
Credit risk Management has been a priority to all financial institutions that give loans to its customers. To increase profitability and reduce risk of loan default in banks operations justifies the recent awareness and importance banks now place on managing their loan portfolios. The main objective of this study is to examine how financial institutions manage credit risk in a way to reduce loan defaults considering the diverse customers at hand with different needs and credit worthiness.
Description:
Financial institutions are companies that provide financial and non financial services to assist individuals and organizations in their monetary and other non monetary issues. Financial institutions consist of three primary groups and these are the savers (the surplus unit), borrowers (the deficit units) and the lenders (financial institutions).
