Credit Risk Aspects and Mitigation Strategies in SMEs Lending

Abstract

In most developing countries, financial institutions apply credit risk management as safeguard assets of the credit portfolio, deposit and improve loan recovery. In this regard, this research outlines the importance of risk management within financial institutions and focuses on credit risk. This paper is based on literature review to identify all relevant risks associated with credit transactions. As a result, it focuses on credit mitigation paths to provide strategies to minimize or eliminate these credit risks.

Keywords: Credit Risk, Mitigation Strategies, Loans, Financial Institutions, SMEs.

DOI: 10.7176/EJBM/12-23-02

Publication date:August 31^st 2020