Credit Risk Management System of Commercial Banks: An Analysis of the Process (Published)
Credit risk is the risk that a financial institution will incur losses because the financial position of a borrower has deteriorated to the point that the value of an asset (including off-balance-sheet assets) is reduced or extinguished. The purpose of this work is to expatiate strategies to mitigate challenges resulting from unpaid loans, which could be used further in understanding the components of credit risk management (CRM) system of commercial banks (CBs) in a less developed economy. This was accomplished through the use of both primary (interviews) and secondary (various relevant documents) information from CBs and key management officials dealing with credit management. The investigation proved that credit risk can be managed and minimized when formidable strategic approaches are implemented and adhered to. This implies that the strategy operated by a bank is an important consideration for a CRM system to be successful. Ghana, a less developed economy, provides an excellent case for studying how CBs operating in economies with less developed financial sector manage their credit risk.
Impact Of Credit On Agricultural Producitivity: A Case Study Of Zarai Taraqiati Bank Ltd (Ztbl) Loans In District Kashmore At Kandh Kot, Sindh Pakistan (Published)
Agricultural sector is the largest contribution to Pakistan’s GDP. Agricultural credit plays an important role in enhancing the agricultural productivity in developing countries like Pakistan. The government of Pakistan introduced several agricultural credit loans through ZTBL and other commercial banks and institutional sources. This study estimated constrains faced by the farmers in acquisitioned source. This study also estimated the impact of credit on agricultural productivity. Data were collected randomly from 30 loanee farmers to three selected ZTBL branches and 30 non loanee farmers in the same villages. It found that the credit has a positive impact on the agricultural productivity and loanee farmers have more gross margins than non loanee farmers. Now the problem is to remove the constraints which small farmers are facing in this regard and then improve the utilization of the credit amount as planned at the time of disbursement in agriculture production process following findings were found. A major proportion i.e.40.8% of the farmers belonged to young age group (36-45 years). It was found that majority of the respondents had low level of education in the selected area. More than 51.7% of the respondents had 6-10 acres of the land holding. A huge majority 95% of the respondents had knowledge about the agricultural credit scheme of the ZTBL Bank. More than 56.75 of the loanees’ farmers avail credit facilities for the first time from the ZTBL bank. A large majority 63.3 of the farmers were not satisfied with the interest rate charged by the banks. It was found that a large number of farmers mutualized the credit amount. About 66.7% farmers got agricultural credit facility from bank without facing any problem. Result indicate that average cultivated area in case of loanee farmers is higher than non-loanee farmers. It was conclude that the loanee farmers had more cost of production as compare to non loanee farmers. Results of regression analysis indicate that credit had very normal impact on agricultural productivity as limiting factors is the proper utilization of loan mount in agricultural sector. The most common utilization of credit amount as construction, repair and renovation of the houses by the loanee farmers.
The research which is captioned “Residential Housing Problems in Anambra State (A Case Study of Onitsha Metropolis) was targeted at portraying the causes of housing deficit alongside its attendant effects on the populace with regards to habitable housing (Residential Properties). The roles of the public sector in housing development through its Ministries, Department and Agencies (MDA) were also highlighted in cognizance to the Federal Mortgage Bank of Nigeria. Owing to the fact that housing problems are over-whelming, ranging from over-crowding, shortage of housing supply etc. The researcher adopted both the primary and secondary methods of data collection. I found that the low income earners were the one’s mostly affected by housing problems and Onitsha being the commercial hub of Anambra State, it is pertinent that government should have synergy with the private developers and re-direct their motives towards arresting these housing problems that are highly prevalent within the area of study. The findings of the study shows that lack of or inadequate housing financial assistance, high cost of building materials, high interest rate and lack of interest by financial institutions to facilitate loans to investors, uncoordinated policies by the government, etc are responsible for the residential housing problems inherent in most of our urban areas. The study recommends that there should be an improvement on loan facilities for building projects and a downward review of interest rates by mortgage banks on loans to property developers.