Risk Of Credit Management In Commercial Banks

Abstract

This study risk of credit management in Pakistani commercial banks helps to indicate the importance of commercial banks in the economy of a country and also indicate the importance of credit management in banks. This study also show the problems in banks about giving loan and also give the solution of problems which are identify in the study. The ability of banks to formulate and adhere to policies and procedures that promote credit quality and curtail non performing loans is the means to survive in the stiff competition. Inability to create and build up quality loans and credit worthy customers leads to default risk and bankruptcy as well as hampers economic growth of a country. For the purpose of the study both primary or secondary data is used to identify the problems in commercial banks of Pakistan so the secondary data is collected through reports case studies through different articles and primary data is collected through questionnaires after the study the we find the reason of bad quality loans and the reason of bad performance of staff in commercial banks staff especially staff of Government banks and through the bad performance and issues in commercial banks we are able to find the effects of these issues and through the study the proper recommendation is given how can banks improve credit policies and how can banks give quality loan because all the economy of country is depend on the performance of banks when the profit of bank is increase the economy of overall country is also increase and if the profit of bank decrease and loss increase the profit of allover the economy is also decrease so if we want to improve the economy of our country first improve banking