PDF | The article proposes a model of credit risk assessment on the basis of factor analysis of retail clients/borrowers in order to ensure
Improper credit risk management reduce the bank profitability, affects the quality of its assets and increase loan losses and non-performing loan which may eventually lead to financial distress. CBN for policy purposes should regularly assess the lending attitudes of commercial banks.
With the continuous development of international financial market, domestic commercial banks will be under the impact of international and domestic factors more, take more internal and external risk. Therefore, research on prevention of commercial banks credit risk has theoretical and practical value.
Lenders are trying to satisfy customers in various credit services, which include lending services. To keep themselves in the play, banks focus on improving credit growth. However, higher credit growth will not truly bring higher profits if banks fail to manage credit risk.
improving credit risk management in commercial banks. Key words: credit risk management, retail clients, borrowers, consumer lending, cluster analysis, factor
that influence effectiveness of credit risk management systems used by commercial banks in Kenya include establishment of a credit policy that clearly outline
Credit risk is a result of the loan business of commercial banks. The definition of credit risk, on the Keywords: commercial banks; credit risk; risk management
The purpose of this paper is to develop a conceptual model to be used further in understanding credit risk management (CRM) system of commercial banks
Any business has such an important factor as risks – i.e. the likelihood of adverse effects. Accordingly, the risks in the banking sector are also not spared.