The management of bank credit risk : the practices of Local commercial banks in managing business customer exposures

Abstract

The focus of this dissertation will be on the complete process of credit risk management. For most banks, loans are the largest and most obvious source of credit risk; however other sources of credit risk exist throughout a bank's activities. Since exposure to credit risk continues to be the leading source of problems in banks worldwide, banks and their supervisors should, through past experiences, have a keen awareness of the need to identify, measure, monitor and control credit risk. In addition, they should inquire whether they hold adequate capital against these risks and whether they are adequately compensated for risks incurred. Banks must also consider the relationships between credit risk and other risks.