International Journal of Commerce and Management Research

International Journal of Commerce and Management Research






ISSN: 2455-1627


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 3, Issue 3 (2017)

Impact of credit risk management on performance of banks


Viqar-U-Nissa, Mushtaq A Darzi

The connotations of the risk vary as per situational context and its application. One perspective defines ‘‘risk’’ as the future issues which can be avoided or mitigated, rather than present problems that must be immediately addressed. Risk is inherent in any walk of life but in financial sectors it is more significant. Literature on risk reveals that due to regulated environment, banks could not afford to take risks. But during the last two decades banks are invariably faced with different types of risks that may have a potentially negative effect on their business. These risks to which banks are exposed to be market risk, operational risk, credit risk and liquidity risk. Out of them, the credit risk is most critical for the survival of the banks as it is directly linked to the major as well as the primary activity of banks i.e., lending funds to the borrowers as money or other instruments. Considering its critical importance, the study aims to identify the various parameters underlying the concept of credit risk management in banks. The study also aims to investigate the impact of various credit risk parameters on bank efficiency. The study uses the secondary data from the data sources available on credit risk management and the various institutions facilitating risk management in banks.
Pages : 69-74 | 1855 Views | 892 Downloads
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