Assessment of Performance of Micro Finance Institutions in Credit Risk Management: The Case of Five Micro Finance Institutions in Addis Ababa
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Date
2011-06
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A.A.U
Abstract
Risk is the fundamental element that drives financial behaviour of micro finance institutions. Financial Institutions, therefore, shou ld manage the risk efficiently to survive in this highly un certain world. The future of micro finance in stitutions will undoubtedly rest on risk management dynamics. Onl y those micro finance institutions that have efficient risk management system will survive in the market in the long run.The effective manage ment of credit risk is a critical component of comp rehen sive risk management essent ial for long-term success of a micro finance in sti tution that is why a micro finance's success lies in its ability to manage a risk.The st udy was tried to eva lu ate the performance sa mple mi cro finan ce in stitution s in credit ri sk managem e nt. To conduct this study the res ea rche r were employed mixed approach and used que st ionnaires, interview and document ana lys is as a so urce of data. The data obta in ed from diFferent so urce s were analyzed and resented the findings. In conc lu sion th e study were tries to seek to outline the omponents of an effective cred it ri sk management system and also were try to find the failure to effectively manage credit risk contributed to a greater exten t to the micro finance in stitutions crisis.
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Assessment of Performance of Micro Finance, in Credit Risk Management