Contribution of credit risk management to the performance of loan portfolio: the case of National Bank of Commerce (NBC)

The purpose of study is to assess the Contribution of Credit risk Management (CRM) on the performance of Bank Loan Portfolio at NBC (National Bank of Commerce). As has been achieved through comparing the loan performance in the period before the bank stated using CRM and investigated on the way credit risk has been effectively managed. Phenomenology research methodology was used and qualitative and quantitative approach was adopted in the study. The study employ random sampling in choosing the loan officers and client basing on assumption that the sample represents the whole population and judgmental sampling technique was used for the case of non probabilistic sampling techniques. The sample size of this study constituted 60 respondents of which 45 respondents were loan officers at the different branches; the other 15 respondents clients. To ensure validity and reliability of measures, the data that were gathered from Head of credit departments and clients were compared. The finding reveal that the bank taking different shape since the Credit Risk Management has been implemented Also the findings discovered that after the introduction of CRM, things changed at NBC as far as loan performance is concerned, therefore calls for setting up of policies that guide both the clients and the banking institutions so that all parties are protected. Communication among the stakeholders has to be enhanced, receiving and disseminate information accurately/correctly will enable the timely and proper assessment of CRM and its smooth and optimal utilization.