Abstract:
The aim of our research project is to investigate the effectiveness of credit risk management in commercial banks and to identify the factors that influence it. In addition to describing the target audience for the study and the sources of data used, we will discuss the methodology used to analyze the data. The study employed both descriptive and multiple regression analysis methods to identify the key factors and their impact on credit risk management. Based on the descriptive statistics, a large number of respondents from the banking sector were unsatisfied with the credit application, credit approval, and credit information processes, while acknowledging the effective implementation of monitoring and follow-up processes. Correlation analysis indicated a significant relationship between credit risk management factors and effectiveness. The results of the multiple regression analysis indicated that credit information, credit approval, credit disbursement, monitoring, and follow-up had a positive and significant impact on the efficiency of credit risk management in commercial banks. To enhance their credit risk management system, banks should prioritize these elements, according to the study's recommendations.
