Abstract: A number of commercial banks have registered an unsatisfactory financial performance. This crisis has been related to inefficient credit risk management systems. This research assessed the relationship between credit risk management and banks’ profitability. The guided objectives were the following; to examine how credit risk mitigation system is applied by BPR Ltd, to find out problems faced by credit risk managers of BPR Ltd in Managing credit risk, and to evaluate the relationship between credit risk management and financial performance of BPR Ltd. This study is expected to be significant to all Rwandan banking sectors, Mount Kenya University, Future researchers, and the general public. The study used BPR Ltd Nyagatare branch as a sample to represent other commercial banks in Rwanda, out of 150 staff of Nyagatare branch the researcher took a sample of 50 respondents to represent others. The researcher used a descriptive and analytical research based on both qualitative and quantitative data. Primary data was obtained by extracting information from questionnaires designed to get answers from different respondent composed of BPR Ltd staff from different level. Secondary data were collected from books, journals, newspapers and internet materials. In research data is presented in form of tables, graphics while analysis and interpretation were based on frequencies and percentages. The research found that BPR Ltd has a credit management system though it needs to be reviewed and adopted more to current Rwandan environment. The research found that there is a direct relationship between credit risk management and profitability of commercial banks. The research recommended that BPR Ltd should review and improve its credit policy and adopt it to Rwandan market and context and BPR Ltd should provide continuous training and updates to its staffs.
Keywords: Credit Policy, Credit Risk, Credit risk Management.
Title: Assessing Credit Risk Management Practices and Performance of Commercial Banks in Rwanda, Case Study of Bank Populaire Rwanda (2011-2013)
Author: Felix Sabeza, Jaya Shukla, Gaurav Bajpai
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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