RISK MANAGEMENT PRACTICES ON HOUSING LOAN OF YOMA BANK LIMITED

The study focuses on risk management practices on housing loan of Yoma Bank. The two main objectives of the study are to identify types of risk in housing loan of Yoma Bank and to analyze each type of risk management practices on housing loan of Yoma Bank. For this purpose, a primary survey was conducted. A sample of 50 respondents was selected from respective functions of risk management department in Yoma Bank. The data were analyzed with statistical tools like mean score and standard deviation methods. The results show that majority of respondents were much aware of the respective risk management practices and instruments to be followed. Based on the result of the survey, the analysis shows Yoma Bank has adopted adequate risk management policies by imposing strict credit evaluation before granting housing loans to customers. Yoma Bank should develop in order to improve an effective risk management system, need to establish a suitable risk environment; operating under a sound credit granting process, maintaining an appropriate credit administration that involves monitoring, processing as well as enough controls over risks. Yoma Bank needs to put and devise strategies that will not only limit the bank exposition to credit risk but will develop performance in housing loan financing and its competitiveness