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 JFRM  Vol.10 No.3 , September 2021
Credit Risk Management Practices and Performance of Commercial Banks in South Sudan
Abstract: The study was set to examine the extent to which Credit Risk Management Practices influence banks performance in South Sudan. Credit Risk Management practices were looked at in terms of Credit Risk Identification (CRI) Credit Risk Assessment (CRA) and Credit Risk Control (CRC). The study applied a cross-sectional survey design with 124 respondents linked to the Credit process across 7 sampled banks in Juba. Cluster, purposive and sample random techniques were employed in gathering data using Structured questionnaires and interview guides. The study revealed a strong positive correlation between risk management practices and bank performance (r = 0.959; p-value = 0.000 which is less than 0.01). Credit Risk Assessment (CRA), Credit Risk Identification and Credit Risk Control all revealed significant results at r = 0.932 at p-value = 0.000; r = 0.977 at p-value = 0.000. The study further revealed that a unit increase in CRI and CRA and CRC, increased bank performance by 35.8%, 25.3% and 37.1% respectively. While CRI = (β = 0.358 and p = 0.000) and CRA (β = 0.253 and p = 0.000) seamed to drive growth of the asset book, CRC influenced Asset Quality by (β = 0.371 and p = 0.000).
Cite this paper: Olobo, M. , Karyeija, G. , Sande, P. and Khoch, S. (2021) Credit Risk Management Practices and Performance of Commercial Banks in South Sudan. Journal of Financial Risk Management, 10, 306-316. doi: 10.4236/jfrm.2021.103018.
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