Thesis Abstract

Abstract
Credit risk management is a critical aspect of banking operations, especially in commercial banks, where lending activities play a significant role in the financial intermediary function. This thesis aims to analyze the credit risk management practices in commercial banks, focusing on how banks assess, monitor, and mitigate credit risk to ensure financial stability and sustainable growth. The study adopts a qualitative research approach, utilizing a combination of literature review, case studies, and interviews with key industry stakeholders to gather insights into current credit risk management strategies and their effectiveness. The research begins with an introduction that sets the context for the study, discussing the importance of credit risk management in the banking sector and outlining the objectives, scope, and significance of the research. A comprehensive review of the relevant literature is presented in Chapter Two, covering key concepts in credit risk management, best practices, regulatory frameworks, and empirical studies on credit risk in commercial banks. Chapter Three details the research methodology employed in the study, including the research design, data collection methods, sampling techniques, and data analysis procedures. The chapter also discusses the limitations of the study and the steps taken to ensure the validity and reliability of the research findings. In Chapter Four, the findings of the study are presented and discussed in detail, highlighting the current credit risk management practices in commercial banks, key challenges faced by banks in managing credit risk, and the impact of credit risk on bank profitability and stability. The chapter also explores the role of technology and data analytics in enhancing credit risk management processes and identifies areas for improvement in current practices. Finally, Chapter Five provides a summary of the key findings, conclusions drawn from the research, and recommendations for commercial banks to enhance their credit risk management practices. The study emphasizes the need for continuous monitoring and evaluation of credit risk exposures, the importance of robust risk assessment frameworks, and the integration of advanced analytics and technology solutions to strengthen credit risk management capabilities. Overall, this thesis contributes to the existing body of knowledge on credit risk management in commercial banks and offers practical insights for banks, regulators, and policymakers to address the evolving challenges in credit risk management and enhance financial stability in the banking sector.

Thesis Overview

The project titled "Analysis of Credit Risk Management in Commercial Banks" aims to investigate and evaluate the strategies and practices employed by commercial banks to manage credit risk effectively. Credit risk is a critical aspect of banking operations, as it involves the potential for borrowers to default on their loan obligations, leading to financial losses for the bank. Therefore, understanding how commercial banks assess, monitor, and mitigate credit risk is essential for ensuring financial stability and sustainability in the banking sector. The research will begin with a comprehensive introduction that outlines the background of the study, problem statement, objectives, limitations, scope, significance, and structure of the thesis. This will provide a solid foundation for understanding the importance and relevance of analyzing credit risk management in commercial banks. The literature review section will delve into existing theories, models, and empirical studies related to credit risk management in commercial banks. This section will explore key concepts such as credit risk assessment, credit scoring models, loan pricing, credit risk mitigation techniques, regulatory frameworks, and best practices in credit risk management. By synthesizing and analyzing relevant literature, the research aims to identify gaps, challenges, and opportunities for improvement in current credit risk management practices. The research methodology chapter will outline the approach and methods used to collect, analyze, and interpret data for the study. It will describe the research design, data sources, data collection techniques, sampling methods, data analysis procedures, and ethical considerations. By employing a rigorous research methodology, the study aims to ensure the validity, reliability, and generalizability of the findings. The discussion of findings chapter will present and analyze the results of the study, highlighting key findings, trends, patterns, and insights related to credit risk management in commercial banks. This section will provide a detailed examination of the effectiveness of current credit risk management practices, as well as recommendations for enhancing credit risk management processes and strategies. In conclusion, the research will summarize the key findings, implications, and contributions of the study, highlighting the significance of analyzing credit risk management in commercial banks. The conclusion will also discuss the practical implications of the research findings for commercial banks, regulators, policymakers, and other stakeholders in the banking sector. Overall, the research aims to provide valuable insights and recommendations for improving credit risk management practices and enhancing financial stability in commercial banks.