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VOL. 5, ISSUE 2 (2023)
Effect of credit evaluation and selection criteria on credit risk management
Authors
Puspa G C, Nabaraj Bhandari
Abstract
Credit risk management
is one of the burning issues in all the banks and financial institutions of the
world. The 7Cs of credit evaluation consists of Character, Collateral,
Capital, capacity, conditions, control and common sense are widely applied by banks in credit appraisal. The study examined the effect of 7cs on credit risk
management of banks. The study applied quantitative approach and used
descriptive and causal comparative research design. Data for the study were
collected by distributing 160 well-structured questionnaires to credit officers
and branch manager of the banks in Butwal sub-metropolitan city and only 139
questionnaires were obtained. The regression result of the study showed that
control and common sense have positive significant effect on credit risk
management. Therefore, it can be concluded that control and common sense should
be taken as important criteria to reduce credit risk.
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Pages:100-107
How to cite this article:
Puspa G C, Nabaraj Bhandari "Effect of credit evaluation and selection criteria on credit risk management". International Journal of Finance and Commerce, Vol 5, Issue 2, 2023, Pages 100-107
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