Assessment of credit risk management practice (In the case of NIB International Bank S.Co)

Credit Risk Management becomes major discussion issues in the financial institutions because of<br> uncertainty related to borrowers’ business. This study of Credit Risk Management is attempted to assess<br> practices related to credit risk management in Nib International Bank. Thus, the rationale behind for<br> undertaking this study was to assess credit risk management techniques and tools that are being used and<br> how Nib international Bank implements those techniques, policies and procedures, as well as, to know<br> how the bank identify, measure, monitor, evaluate and control credit risk and to suggest possible<br> solutions. The study design was descriptive in which quantitative and qualitative datasets were mixed<br> to describe the state of affair. To this effect, primary data survey data (using questionnaire. Eighty eight<br> samples were involved using stratified random sampling at branches. The researcher organized and<br> analyzed the collected data by SPSS-23. From the findings it is concluded that the bank has well<br> organized credit policy and good credit granting practice and used suitable credit risk assessment<br> tools and techniques and credit risk management practice. However, the bank has some pitfalls like<br> rigidity on the Bank’s credit policy and process. Thus, it is recommend that Nib International Bank<br> should simplify and review its credit manual, policy and procedure as well as ensure its<br> implementation to become more competitive in the banking industry and meet customer expectation..<br> Finally, the study may provide a possible opportunity to all stake holders to gain deep knowledge about<br> the banks credit management practice and have important practical implications for the bank regulators<br> authorities and policy makers of the bank.