Credit Risk Management
School of Technology and Society
MASTER DEGREE PROJECT
Title: BANK PERFORMANCE AND CREDIT RISK MANAGEMENT
Master Degree Project in Finance Level ECTS: 15 Spring term Year: 2008 Takang Felix Achou Ntui Claudine Tenguh Supervisor: YingHong Chen (PhD) Examiner: Bernd-Joachim Schuller (PhD)
ACKNOWLEDGEMENT
We would like to express our immense thankfulness to all those who gave us the possibility to complete this thesis. We would like to thank the library staff of the University of Skovde for their relentless effort in making access to research data and literature possible. We are bound to all our lecturers for their motivating effort in transferring knowledge. Also, our most profound gratitude goes to our parents, husband, siblings, friends and relatives for their unconditional love and steadfast support always.
Especially, we are deeply indebted to our supervisor Dr.Yinghong Chen, whose support, interest, encouragement and stimulating suggestions helped us during the research and writing process of this thesis.
Above all, we thank you Almighty God for all your mercies.
2
ABSTRACT
Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. Credit risk has always been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affaires of the other partner. The axle of this study is to have a clearer picture of how banks manage their credit risk. In this light, the study in its first section gives a background to the study and the second part
MASTER DEGREE PROJECT
Title: BANK PERFORMANCE AND CREDIT RISK MANAGEMENT
Master Degree Project in Finance Level ECTS: 15 Spring term Year: 2008 Takang Felix Achou Ntui Claudine Tenguh Supervisor: YingHong Chen (PhD) Examiner: Bernd-Joachim Schuller (PhD)
ACKNOWLEDGEMENT
We would like to express our immense thankfulness to all those who gave us the possibility to complete this thesis. We would like to thank the library staff of the University of Skovde for their relentless effort in making access to research data and literature possible. We are bound to all our lecturers for their motivating effort in transferring knowledge. Also, our most profound gratitude goes to our parents, husband, siblings, friends and relatives for their unconditional love and steadfast support always.
Especially, we are deeply indebted to our supervisor Dr.Yinghong Chen, whose support, interest, encouragement and stimulating suggestions helped us during the research and writing process of this thesis.
Above all, we thank you Almighty God for all your mercies.
2
ABSTRACT
Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. Credit risk has always been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affaires of the other partner. The axle of this study is to have a clearer picture of how banks manage their credit risk. In this light, the study in its first section gives a background to the study and the second part
References: 11 The Bank for International Settlements (or BIS) is an international organization of central banks which exists to "foster cooperation among central banks and other agencies in pursuit of monetary and financial stability" (Wikipedia online, 2008)