Evaluation of Credit Risk Management Practices in Societe Generale Ghana

Abstract

The study evaluated the credit risk management strategies of SG-SSB Ghana. The research was an attempt to assess the extent to which the implementation of various credit risk management strategies by the bank has reduced the amount of non-performing loans. In order to answer the research objectives, the case study approach was employed where face-to face interview was conducted to collate the views of a senior credit officer at SG-SSB Ghana Ltd on credit risk management strategies. Besides, information on non-performing loans was obtained from administered questionnaires. The results from the study showed that SG-SSB has a clear, written guideline on credit risk management with the board of directors having an oversight responsibility for implementation. SG-SSB realigns the amount of credit within various sectors grouped into a credit portfolio depending on environmental factors such as political regime, macroeconomic strategy of political regimes, new and existing regulations and legislation, social concerns of operating markets and technological developments within the banking industry in Ghana.  The study recommends that SG-SSB should work in collaboration with credit reference bureau in the country to thoroughly investigate the past credit records of loan applicants so as to reduce the high rate of default.