An Analysis Of The Effectiveness Of Credit Risk Management Practices By Zimbabwean Banks. The Case Study Of Steward Bank.
- Author
- Paul Kasuntha
- Title
-
An Analysis Of The Effectiveness Of Credit Risk Management Practices By Zimbabwean Banks. The Case Study Of Steward Bank.
- Abstract
- The purpose of the research was to analyse the credit risk management practices by Steward Bank, Zimbabwe. The research was carried to give answers to the research questions, what are the current credit risk management practice that are being practiced by Steward Bank? To what extent are these practices effective in credit risk management of the bank? What measures can be recommended to improve credit risk management in the banking sector? Descriptive research design was adopted. The population of the study was drawn from the credit risk management team collected using questionnaire and interviews. The major findings of the research indicated that the authoriser’s experience and skills in the area of credit risk management is very crucial. With the regards to the credit management practices, the bank was strongly affected by credit monitoring and debt collection efficiency, credit rating quality, approver or authorizer’s level of training, skill and experience. The research concluded that Zimbabwean banks have effective credit risk management systems. The credit risk management was an end-to-end process cutting across risk assessment, loan approval, monitoring and control throughout the loan tenure and effective follow up to ensure minimum risk of default. The effectiveness of credit risk management hinged on the competence of the credit risk management team data quality, the system design, and effective external environmental forces management. In order to improve reliability, accuracy, effectiveness and efficiency, the bank should incorporate information systems while assessing credit risk exposure. The bank should copy up with technological advancement in information systems. The credit risk management staff should always consist of well trained, skilled, and well-informed personals to minimize the major challenges faced by studied the bank.
- Date
- 2022
- Publisher
- BUSE
- Keywords
- Effectiveness
- Credit Risk
- Management Practices
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
-
Paul Kasuntha.pdf