Effect Of Poor Credit Management In The Ability Of Commercial Banks

📄 Project Abstract

Credit management in commercial bank is concerned with the management of cash flow, liquidity and profitability of the bank, it has been observe over the years that credit have been granted merely to preserve relationships without due records to proper lending procedure. Proper credit management entails that due attention is paid to the terms of credit and to test the effectiveness of the terms of credit, a recoverable turnover ratio should be used. Note, a successful management of commercial bank credit ensures a steady growth of such bank. A credit manager is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk and terms of payment of other customers. In companies, the role of credit manager is variable in it's scope. Boaz Galinson (2011) Leumi - credit risk modeling and measurement, Israel pointed out that credit risk management should be much more than just an add on to the credit process, but ef...