Assessment of Credit Risk Management in the Case ABay International Bank (AIB) Alahmeta Branch

Abstract

Credit management is the most sensitive part of the banking system and where most problems arise. Because of this reason and other credit management should be given due care to safeguard and improve the banking industry, if something went wrong in managing credit improper way; the banking industry and the general economy will collapse. The main reason for studying is to determine and find how efficiently and effectively Abay International Bank (AIB) Alahmeta Branch is managing the credit process. The study here is applied sampling technique non-probability sampling particularly pervasive sampling to gather relevant data more concerned and those who are deemed knowledge about the topic are selected. At present in Abay International Bank Share Company Alahmeta Branch the researcher was used 15 Employees as a sample from the total population; because they are concerned bodies to the topic, a primary source of data which is a questionnaire to the staff members (officers) were prepared 15 questionnaires to the targeted officers, and a source of secondary data from the branch official documents like financial statements that indicate the disbursed; collected and uncollected amount of loan were conducted with concerned body of branch manager. The data that were collected from primary and secondary source of data were presented by table and analyzed through descriptive with help of statistical program of SPSS 2005, version 16 result. The finding from this study is the borrower was late in making the mortgage payment, has less efficient risk monitoring and controlling system and there is any good collection techniques loan from the clients.

Keywords: Collection techniques, Credit management, Follow up and Requirements borrowers.