Risk Management Credit in Commercial Banks
Author : Dr. Jyothi MN
Abstract :
Credit risk management is one of the most critical dimensions of banking operations. Commercial banks act as financial intermediaries by accepting deposits and extending credit to individuals, businesses, and governments. While lending is a primary source of income for banks, it also exposes them to the risk of borrower default. Effective credit risk management is essential not only for the stability and profitability of banks but also for the overall health of the financial system. This paper explores the concept, evolution, processes, tools, challenges, and future prospects of credit risk management in commercial banks, with special reference to modern banking practices.
Keywords : Credit risk, commercial banks, non-performing assets, Basel norms, credit appraisal, risk mitigation