Assessment of credit risk management practice in Dashen Bank

Abstract

Financial stress is affecting all types of businesses across industries, but it particularly affects banks because they are a major source of capital and taking risk is an essential and unavoidable part of the banking business. Indeed, taking risk is embedded with reward, and financial crises have become a serious problem for the world in recent years. These papers evaluate Dashen Bank's approach to credit risk management. This study's primary objective is to evaluate Dashen Bank's credit risk management practices and determine how they are managed. Its primary focus is on credit evaluation in Dashen Bank. The researcher used descriptive research design, distributed questionnaires to officers. In addition to this the researchers used in- depth interview with management bodies. Both primary and secondary data collection method were used, census method were used, the study findings indicate that the bank doesn’t provide enough training for employees, the offsite follow up method placed by the bank is not successful, the credit risk management of the bank is weak also the credit collection system is not effective are among the main findings. The researcher suggest that the bank should provide strong and consecutive training for the employee, better follow up mechanism should apply new procedure should put in place to assess the capacity the client who need the long term loan.