Credit Risk Management Practices and Performance of Commercial Banks in South Sudan - Journal of Financial Risk Management

JFRM > Vol.10 No.3, September 2021

Journal of Financial Risk Management

Volume 10, Issue 3 (September 2021)

ISSN Print: 2167-9533 ISSN Online: 2167-9541

Google-based Impact Factor: 1.09 Citations

Credit Risk Management Practices and Performance of Commercial Banks in South Sudan ()

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Download as PDF (Size: 349KB) PP. 306-316

DOI: 10.4236/jfrm.2021.103018 891 Downloads 6,327 Views Citations

Author(s)

Maurice Olobo^1*, Gerald Karyeija¹, Protazio Sande¹, Steven Khoch²

Affiliation(s)

¹School of Management Science, Uganda Management Institute (UMI), Kampala, Uganda.
²School of Business, Uganda Christian University, Mukono, Uganda.

ABSTRACT

The study was set to examine the extent to which Credit Risk Management Practices influence banks’ performance in South Sudan. Credit Risk Management practices were looked at in terms of Credit Risk Identification (CRI) Credit Risk Assessment (CRA) and Credit Risk Control (CRC). The study applied a cross-sectional survey design with 124 respondents linked to the Credit process across 7 sampled banks in Juba. Cluster, purposive and sample random techniques were employed in gathering data using Structured questionnaires and interview guides. The study revealed a strong positive correlation between risk management practices and bank performance (r = 0.959; p-value = 0.000 which is less than 0.01). Credit Risk Assessment (CRA), Credit Risk Identification and Credit Risk Control all revealed significant results at r = 0.932 at p-value = 0.000; r = 0.977 at p-value = 0.000. The study further revealed that a unit increase in CRI and CRA and CRC, increased bank performance by 35.8%, 25.3% and 37.1% respectively. While CRI = (β = 0.358 and p = 0.000) and CRA (β = 0.253 and p = 0.000) seamed to drive growth of the asset book, CRC influenced Asset Quality by (β = 0.371 and p = 0.000).

KEYWORDS

Credit Risk Identification, Credit Risk Assessment, Credit Risk Control, Asset Book

Share and Cite:

Olobo, M. , Karyeija, G. , Sande, P. and Khoch, S. (2021) Credit Risk Management Practices and Performance of Commercial Banks in South Sudan. Journal of Financial Risk Management, 10, 306-316. doi: 10.4236/jfrm.2021.103018.

Cited by

[1]	La gestión del riesgo crediticio y su relación con la morosidad en la COOPAC Todos los Santos de Chota Ltda. 560–2019.
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[2]	Managing Risk with the Concept of SCRM on Procurement and Warehouse Department


[3]	A Multi Class Machine Learning Model for Predicting Credit Default in Credit Risk Management

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