Analysis of Credit Risk Management in Commercial Banks: A Case Study

Thesis Abstract

Abstract
Credit risk management is a critical aspect of banking operations, especially for commercial banks. This study aims to analyze the credit risk management practices in commercial banks through a detailed case study approach. The research explores the various strategies and techniques employed by commercial banks to assess, monitor, and mitigate credit risks effectively. The study focuses on understanding how commercial banks identify potential risks, evaluate the creditworthiness of borrowers, and manage credit exposures to maintain a healthy loan portfolio. The research methodology involves a comprehensive literature review to examine existing theories and best practices in credit risk management within the banking sector. Additionally, primary data will be collected through interviews and surveys with credit risk management professionals in a selected commercial bank. The data will be analyzed using qualitative and quantitative methods to provide insights into the current credit risk management practices and their effectiveness. The findings of this study are expected to reveal the strengths and weaknesses of the credit risk management framework in commercial banks, highlighting areas for improvement and potential risk factors that need to be addressed. By identifying key challenges and opportunities in credit risk management, this research aims to contribute to the enhancement of risk management practices in the banking industry. The significance of this study lies in its potential to inform decision-makers in commercial banks about the importance of robust credit risk management practices in maintaining financial stability and sustainable growth. The research findings can be utilized by banks to enhance their risk management strategies, improve credit assessment processes, and strengthen overall risk governance frameworks. In conclusion, this thesis provides a comprehensive analysis of credit risk management in commercial banks, offering valuable insights into the complexities of managing credit risks in a dynamic banking environment. The study emphasizes the importance of proactive risk management strategies and continuous monitoring to mitigate potential credit losses and safeguard the financial health of commercial banks.