Rural banks in Ghana are not exempted from the risk exposures associated with managing credit. Given their importance to the economy, appropriate measures should be taken to mitigate credit risk exposures of rural banks in the country. The study critically examines the credit risk management practices of rural banks in Ghana making reference from Adansi Rural Bank Limited. The study was carried out to examine the credit management practices, credit policies and strategies for managing overdue loans as well as challenges faced in this practice and to recommend solutions that will mitigate the credit risk exposures of Adansi Rural Bank Limited. The ability of a rural bank to formulate and adhere to credit policies and procedures that improve credit quality and curtail non-performing loans is considered a means by which the rural bank can survive a stiff competition in the banking industry. A rural bank's inability to create, build up quality loans and credit worthy customers is most likely to lead to credit default and a possible bankruptcy which can hamper the economic growth of a country. The researcher used a purposive sampling technique to select a sample size of forty respondents which comprised of branch managers and credit officers from four branches of the rural bank. The researcher used a well structured questionnaire and a face to face interview to collect primary data for this study. The researcher used primary and secondary data in the study and descriptive statistical tools were employed in analysing the data collected. The study is a descriptive researcher. The researcher discovered that Adansi Rural Bank Limited had implemented a rigorous credit risk management policy. This included loan appraisal, use of collateral and checking the credit history of borrowers. The results of the study showed that, rural banks that have implemented rigorous credit risk management policies were exposed to few challenges in managing credit risk as compared to rural banks with poorly implemented credit risk management policies. In conclusion, a comprehensive credit risk management system should be adopted by rural banks.

Credit risk is the risk resulting from the uncertainty that a borrower or a group of borrowers may be unwilling or unable to meet their contractual obligations as per the agreed terms. It is the largest element of risk faced by most banks and financial institutions. Potential losses due to high credit risk can threaten a bank's solvency. After the global financial crisis of 2008, the importance of adopting prudent risk management practices has increased manifold. This book attempts to demystify various standard mathematical and statistical techniques that can be applied to measuring and managing portfolio credit risk in the emerging market in India. It also provides deep insights into various nuances of credit risk management practices derived from the best practices adopted globally, with case studies and data from Indian banks.

The practice of credit risk management is so challenging since it offers a relatively greater freedom and scope to bankers for deciding over matters related to loan portfolios. However, the prevalence of higher degree of freedom in the field of credit risk management is also accompanied by greater risks. This study is aimed to assess the credit risk management practices and challenges in the context of Awash International Bank, Mekelle Branch which is located in the capital of Tigrai National State, Mekelle. The rationale for undertaking this study is to enable Awash International Bank manage its credit risk effectively which determines its success and future survival. It is also equally important for financial institutions especially banks which are suffering from credit default problems. The study used both primary and secondary data. The secondary data were collected from clients' files, report, directives, journal articles, and manual of the bank while the primary data were collected through semi-structured questionnaire and interview. Out of 164 target population for the study, 69 individuals were taken as a sample through stratified sampling techniques.

This book investigates factors that contribute to the development of an efficient financial sector in Ghana. While sustainable finance has long been known to propel economic growth and development, and while many African countries have taken initiatives to develop integrated frameworks of their financial sectors that tackle developmental challenges, scholars and policymakers have always grappled with understanding of factors that enhance performance of the financial sector. In this book, an expert team of authors examines the financial landscape, central bank policies, competition, financial innovation, financial inclusion and banking stability in Ghana, while also exploring how financing models such as enterprise finance and microfinance can be more effective in sustaining financial markets. The authors discuss how Ghana can build fortified institutions, regulatory frameworks, and productive capacity to strengthen the financial sector and foster pathways that will enhance economic development. Empirical and scientific evidence give this book a unique approach that is both qualitative and quantitative.

This publication aims to complement existing methodologies by establishing a comprehensive framework for the assessment of banks, not only by using financial data, but also by considering corporate governance. It argues that each of the key players in the corporate governance process (such as shareholders, directors, executive managers, and internal and external auditors) is responsible for some component of financial and operational risk management. Following a holistic overview of bank analysis in Chapter 2, the importance of banking supervision in the context of corporate governance is discussed in Chapter 3. This chapter also considers the partnership approach and the emerging framework for corporate governance and risk management, as well as the identification and allocation of tasks as part of the risk management process. The framework for risk management is further discussed in Chapters 4 through 11.

Over the last decade, the role of credit risk management practices in the overall risk management in the commercial banks was well accepted and banks have established a set of these practices, collectively known as Credit Risk Management (CRM) framework. The present paper evaluates the strength of CRM framework in the Indian banking industry, and makes a quantitative assessment of the overall CRM framework and each of its three major elements, namely, CRM organization, CRM policy and strategy, and CRM operations and systems. The CRM operations and systems are closely studied at transaction and portfolio levels. The paper statistically arrives at two potential areas of improvement that bank management should focus on in the near future, namely, credit risk monitoring at transaction level and credit portfolio risk analysis. The study provides new insights into CRM process and CRM framework in commercial banks.