International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064


Downloads: 146 | Views: 282

Research Paper | Finance | Somalia | Volume 8 Issue 2, February 2019


Credit Risk Management and Bank Performance Case Study Commercial Banks in Mogadishu Somalia

Anab Ali Farah


Abstract: The theme was about the Credit Risk Management and Bank Performance; Three research objectives guided the work. They are: 1) To determine the effect of a credit appraisal process in the financial operation of selected commercial bank in Mogadishu-Somalia.2) To examine the issue of lending requirements on the fiscal operation of selected commercial bank in Mogadishu-Somalia.3) To establish the effect of the monitoring process on the financial operation of selected commercial bank in Mogadishu-Somalia. The research purpose was a quantitative and qualitative survey descriptive research design. Information was collected through quantitative method. A questionnaire was employed to gather data from sample size 67 of the respondents. The data were collected using frequency table, and SPSS version 16.0 was used to examine the information. This survey will be essential for Banks, and also the study will be useful to potential researchers as literature, which is interesting to bear out for further research in this area. After background information has been called for the respondents, the researchers went ahead to deliver the findings are following: Based on the findings in objective one presented that To determine the result of credit appraisal process on the financial operation of selected commercial bank in Mogadishu-Somalia scored Average mean 4.26overall and this outcome indicates that the overall of objectives was Excellence. Established on the findings in objective two presented that To examine the issue of lending requirements on the fiscal operation of selected commercial bank in Mogadishu-Somaliascored Average mean 4.43 overall and this outcome indicates that the overall of objectives was Excellence. Established on the findings in objective three presented that To establish the effect of the monitoring process on the financial operation of selected commercial bank in Mogadishu-Somalia scored Average mean 4.43 overall and this outcome indicates that the overall of objectives was Excellence. Established along the findings presented that Commercial Bank Performance (DV) scored Average mean 3.3 overall and this result indicate that the overall of objectives was good. The effect of correlation analyzes the relationship between Credit Risk Management and Bank Performance. The Result indicates that Credit Risk Management has positive correlate on Bank Performance with beta value 0.815. That stands for the correlate between variables is 81.5 % of beta value, this outcome is a high positive correlate among variables. The researcher recommends that the commercial banks should also try to maintain their operational cost low as this negates their profit margin thus leading to low financial performance. This is drawn by the substantial effect of net income on financial performance.


Keywords: A credit risk, Credit risk management, Bank performance, Credit appraisal, Lending requirement, Credit monitoring


Edition: Volume 8 Issue 2, February 2019,


Pages: 1008 - 1012


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