scholarly journals Effects of Credit Risk Control Measures on Financial Performance of Micro-finance Institutions in Kenya: A Case of Yehu Micro-finance Service Limited

2019 ◽  
Vol 1 (4) ◽  
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Risk Control ◽  
Control Measures

scholarly journals A Comparative Evaluation of the Effects of Credit Risk Control on the Profitability of Micro-Finance Bank

2021 ◽  
Vol 6 (6) ◽  
pp. 67-74
Author(s):  
Esther Yusuf Enoch ◽  
Abubakar Mahmud Digil ◽  
Usman Abubakar Arabo
Keyword(s):  
Credit Risk ◽  
Comparative Evaluation ◽  
Sampling Method ◽  
Risk Control ◽  
Relevant Information ◽  
Control Measures ◽  
Credit Management ◽  
Secondary Sources ◽  
Multi Stage ◽  
Inadequate Information

When assessing lending applications, banks face the problem of inadequate information needed to screen potential borrowers. The relevant information needed to evaluate the commitment of the entrepreneur and the likelihood of the business is challenging to interpret or even absent. This creates risk for the banks. Therefore, it is of paramount importance to give much consideration to credit management first before embarking on lending. In this research, we used both primary and secondary sources. We adopt a multi-stage sampling method by selecting a set of 21 respondents from a population of 52 credit officers. Questionnaires were used to collect data from the respondents while descriptive and inferential statistics were used to analyze the data collected and in testing the hypotheses. Specifically, we used simple percentage and regression analysis. We used the software SPSS (Statistical Package for Social Science) to implement the statistical techniques mentioned above. The results showed that microfinance banks need to strengthen their credit risk control measures to increase their profitability. This is because if properly adopted it helps to decrease the percentage of payments defaults. Credit management is important in improving the financial performance of microfinance banks and this is attributed to the fact that sounds and grounded credit management (client appraisal) allowed the bank to be efficient and have the availability of liquidity.

scholarly journals Credit Management Practices and Bank Performance: Evidence from First Bank

2018 ◽  
pp. 1-10 ◽  
Author(s):  
Ogunlade Olabamiji ◽  
Oseni Michael
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Management Practices ◽  
Risk Control ◽  
Sampling Technique ◽  
Positive Influence ◽  
Specific Reference ◽  
Credit Management ◽  
Significant Positive Influence ◽  
Analyze Data

The study examined the influence of credit management practices on financial performance of Nigerian banks with specific reference to First bank Plc. Data was collected using Purposive sampling technique from thirty (30) respondents as a sample size used to collect data from the respondents. Both descriptive and inferential statistics were used to analyze data, such as frequency, percentage, weighted mean score, and multiple regression. The result revealed that credit management practices have a significant positive influence on the financial performance of First bank. The result concluded that client appraisal, credit risk control, and collection policy are major predictors of financial performance of First bank. Subsequently, the study recommended that management of other banks should learn from First bank by enhancing their client appraisal techniques, credit risk control and adopting a more stringent policy to improve their financial performance.

scholarly journals Group Lending and Loans Performance in Micro-Finance Institutions in Nairobi City County, Kenya: Case of Kenya Women Microfinance Bank Limited

2019 ◽  
Vol 3 (III) ◽  
pp. 96-110
Author(s):  
Ali Abdi Abdirashid ◽  
Ambrose O Jagongo
Keyword(s):  
Credit Risk ◽  
Risk Control ◽  
Control Measures ◽  
Credit Policy ◽  
Inferential Statistics ◽  
Group Lending ◽  
Appraisal Process ◽  
Group Members ◽  
The Relationship ◽  
Group Self

The microfinance industry has grown over the years. However, there is a growing concern on the loan default among microfinance institutions in Kenya. This may be a pointer to increased ineffectiveness of the institutions’ various lending programs. This study seeks to examine the relationship between group lending and loans performance in micro-finance institutions in Kenya, with a focus on KWFT. The study specifically sought to: determine the relationship between group self-internal regulations among group members and loans performance in KWFT microfinance; to examine the relationship between credit appraisal process of members and loans performance in KWFT microfinance; to establish the relationship between credit policy on group loans and loans performance in KWFT microfinance; and to assess the relationship between credit risk control measures on the group and loans performance in KWFT microfinance. The study was guided by theory of group lending, Asymmetric Information theory and Portfolio Theory. The study adopted a descriptive research design. The target population consisted of approximately 60 respondents in six KWFT branches within Nairobi County. The unit of observation was the credit managers and credit/ loan officers. Since the population was small, a census study was adopted whereby the entire population was considered for the study, thus all the 60 respondents formed the sample size for the study. The study collected primary data though a questionnaire. The developed questionnaire was checked for its validity and reliability through pilot testing. The collected data was analyzed using descriptive and inferential statistics with the help of SPSS software. The descriptive statistics included frequency distribution tables, means, standard deviation and measures of relative frequencies. The inferential statistics entailed a regression analysis which will establish the relationship between variables. The study findings indicate that strong correlation coefficient between loans performance at KWFT and group self-internal regulations, credit appraisal process, credit policy and credit risk control measures and they are all statistically significant. The study concludes that groups financed had put in place mechanisms to ensure that the group members repay loans in time, credit appraisal process employed to inform lending to groups were amount of credit the group qualifies, the ability of the group to repay and the nature of collateral to be imposed, rates charged on the group loans determines the effectiveness of repayment of loans by the members and the period the group is given to repay the loans determines the loan performance. The study recommends that organizations participating on group loans need to ensure that the group are promoting good governance in their leadership and administration, the study recommends that those in charge of loans need to work for stability in the macro-environment to ensure interest rates charged by MFIs remain stable and affordable and the study recommends that micro-finance institutions should put in place a credit risk management team whose mandate will be to establish well defined credit control policy and guidelines.

scholarly journals RISK ASSESSMENT PERUSAHAAN EXPORT SEPATU PADA BAGIAN LINE UPPER PT. X

2015 ◽  
Vol 4 (1) ◽  
pp. 22
Author(s):  
Novita Dewi Vebriyana Dankis ◽  
Mulyono Mulyono
Keyword(s):  
Risk Assessment ◽  
High Risk ◽  
Risk Control ◽  
Consumer Products ◽  
Hazard Identification ◽  
Low Risk ◽  
Residual Risk ◽  
Control Measures ◽  
On Line ◽  
Punch Hole

ABSTRACTRevolution in the industry sector has been rapidly grown to fill up all the needs of the consumer products. One involves  supporting advanced machinery such as “Cutting, Skiving, Stitching, Emboss Logo, Roving, Punch Hole, Juki, BrushingEdge, Hammer Over Lapping and Two Molding”. In the factory production process, there are various types of high-risk activities, especially on line upper. The main of this research is to study the risk assessment on export companies line the upper part of the shoes export company using Job Safety Analysis. This research was conducted observational crosssectional design. Observations made to the hazards and control measures. Interviews were conducted to 12 employees. Variables in this research is production activity, hazard identification, risk assessment, risk control and residual risk. The results of hazard identification has been done, there are 91 known potential hazards, for risk assessment found 7 high risk and low risk 5. Machine classified as high risk on the risk assessment is roving machine, whereas low-risk is two molding machine. Control efforts on the upper line in accordance with the hierarchy of controlling a number of 91 controls, whereas for the residual risk still remains as much as 30 residual risk. Control has been applied quite well by pressing the consequences of hazards and risk management.Keywords: risk assessment, controlling, residual risk

scholarly journals The impact of risk factors on the financial performance of the commercial banking sector in Barbados

2018 ◽  
Vol 7 (1) ◽  
pp. 76-93 ◽  
Author(s):  
Anthony Wood ◽  
Shanise McConney
Keyword(s):  
Risk Factors ◽  
Credit Risk ◽  
Financial Performance ◽  
Banking Sector ◽  
Negative Impact ◽  
Interest Rate Risk ◽  
Commercial Banking ◽  
Country Risk ◽  
Risk Variable ◽  
The Impact

The objective of this paper is to determine the impact of risk factors on the financial performance of the commercial banking sector in Barbados using quarterly data for the period 2000 to 2015. The empirical results indicate that Capital Risk, Credit Risk, Liquidity Risk, Interest Rate Risk and Operational Risk have statistically significant impacts on financial performance. The only risk variable which does not derive this result is Country Risk. In addition, of those variables which proxy external factors, only GDP Growth has a statistically insignificant influence on financial performance. Credit risk exerted a negative impact on the banks’ financial performance, thus the banks must ensure they adopt appropriate measures to minimise the impact of this risk. Higher levels of capital impacted positively on the banking sector’s profitability. This paper is the first effort employing such an extensive dataset based on Barbados’ commercial banking sector and shows the main factors that influence commercial banks’ financial performance in this developing economy.

scholarly journals Financial Credit Risk Control Strategy Based on Weighted Random Forest Algorithm

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Guo Yangyudongnanxin
Keyword(s):  
Risk Assessment ◽  
Random Forest ◽  
Credit Risk ◽  
Control Strategy ◽  
Control Strategies ◽  
Risk Control ◽  
Evaluation Index System ◽  
Risk Level ◽  
Random Forest Algorithm ◽  
Financial Credit

In order to improve the effectiveness of financial credit risk control, a financial credit risk control strategy based on weighted random forest algorithm is proposed. The weighted random forest algorithm is used to classify the financial credit risk data, construct the evaluation index system, and use the analytic hierarchy process to evaluate the financial credit risk level. The targeted risk control strategies are taken according to different risk assessment results. We compared the proposed method with two other methods, and the experimental results show that the proposed method has higher classification accuracy of financial credit data and the risk assessment threshold is basically consistent with the actual results.

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