Abstract:
The primary objective of this research was to assess credit risk management practices in commercial bank of
Ethiopia. The design of the study was descriptive research design. The purposive sampling strategy was employed
to identify study participants in this investigation. This investigation also included primary data. The was
gathered using questionnaires distributed to bank employees in departments such as credit assessment, credit
analysts, credit information and portfolio management, customer relationship managers (CRM), and risk
management. Using SPSS software version 23, descriptive statistics were used to conduct the data analysis.
Absence of the bank to review and update existing credit policies, procedures and strategy on regular basis,
failure of the bank to consider future economic conditions of the country and less respond when credit default
sign appear, senior management has somewhat a subjective decision in dealing with credit risk management.
correlations between borrower financial condition, price changes, and the liquidity market for collateral assets
are rarely assessed, and customers' willingness and ability to pay are not assessed on a regular basis are the main
findings of the study. Therefore, it necessary to recommend the bank to disseminate credit risk management
policies throughout the banks, examined customer’s willingness and ability to pay on regular basis and assessed
the correlation between a borrower's financial condition, price changes, and market liquidity for collateral assets
and Properly evaluating and measuring the adequacy, marketability, and enforceability of collateral securit
