CREDIT RISK MANAGEMENT PRACTICES ON LOAN PERFORMANCE OF KANBAWZA BANK LIMITED

The thesis was focused on the study of credit risk management practices on loan in KBZ Bank and its effect. Two major objectives of the study are to identify the credit risk management practices on Loan in KBZ Bank and to examine the effect of credit risk management practices on loan performance in KBZ Bank. This research used both primary data and secondary data. The primary data collected by face to face data collection method. Survey was conducted by using structured questionnaires and used descriptive analysis. The data is analyzed by using SPSS software version 22 to obtain data. In this study, Multiple Linear Regression analysis was used. The questionnaires have been distributed to 50 respondents from Credit Functions of KBZ Bank. The study shows that a positive and significant correlation between loan performance and credit risk management practices in KBZ Bank. From this study, the correlation analysis shows that the KBZ bank should do more practices in credit risk monitoring. KBZ Bank should do that credit risk management is the most important contribute to the success and the financial stability of the bank and an understanding of risk management practices help reduce the losses and also cos