TITLE:
Analysis of Credit Risk Management Practices in Commercial Banks in DR Congo “Case of RAWBANK SA”
AUTHORS:
Ngiay Matsanga Stephie, Dai Hong
KEYWORDS:
Analysis, Credit Risk Management, Commercial Banks, DR Congo, RAWBANK SA
JOURNAL NAME:
Open Access Library Journal,
Vol.10 No.10,
October
26,
2023
ABSTRACT: Effective credit risk management is of paramount importance for the stability and profitability of commercial banks. This study focuses on analyzing credit risk management practices within the context of the Democratic Republic of Congo (DR Congo), with a specific emphasis on RAWBANK SA. The aim of this research is to gain insights into the credit risk assessment and mitigation strategies employed by RAWBANK SA and to evaluate their effectiveness in ensuring financial stability. The study employs a mixed-methods approach, combining qualitative and quantitative methodologies. Qualitative data is gathered through in-depth interviews with key personnel responsible for credit risk management at RAWBANK SA. These interviews provide a comprehensive understanding of the bank’s credit risk policies, procedures, and challenges faced in the unique economic and regulatory environment of DR Congo. On the quantitative front, the study analyzes historical credit data, assessing loan default rates, provisioning practices, and risk-adjusted returns. This data-driven analysis allows for a quantitative evaluation of the bank’s credit risk exposure and its management over a specific period. Findings from the research shed light on the strengths and weaknesses of RAWBANK SA’s credit risk management framework. The study also highlights the impact of macroeconomic factors, regulatory constraints, and industry-specific challenges on credit risk in the DR Congo banking sector. By examining the case of RAWBANK SA, this research contributes to the broader understanding of credit risk management practices in emerging markets and offers recommendations to enhance the bank’s risk management strategies. The insights gained from this study are valuable not only for RAWBANK SA but also for other commercial banks operating in similar economic and regulatory contexts. The findings provide a basis for informed decision-making, policy formulation, and risk mitigation strategies, ultimately contributing to the overall financial stability and sustainable growth of the banking sector in DR Congo.