An Assessment of the Credit Risk Management Mechanisms at Berhan International Bank of Hossana Branch, Ethiopia

Muluken Yaregal Getahun, Tsegaye Abie Gebeyehu


The main aim this study was assessing the credit risk management mechanisms at Berhan International Bank of Hossana branch. Descriptive research design with both qualitative and quantitative methods (numerical, percentage, and tabulation) form of data analysis was employed. Both questionnaire and interview were utilized as data collecting instruments. On the other hand, purposive sampling technique was employed so as to select samples of the study. The Mechanisms used by Berhan international bank so as to manage credit risk are money saving and portfolio diversification. The bank must design credit risk management by applying two approaches required to follow to ensure the safety of each loans. The credit policy of the bank is good but it should be consider its objective for customer& the credit policy should be subject to periodically depending on the change that may take place &set objective standards parameter to official who grant loans.

Keywords: Risk, Credit Risk, Risk management mechanisms, Bank

DOI: 10.7176/RJFA/11-7-04

Publication date: April 30th 2020

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