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  1. Co-operative University, Sagaing
  1. Co-operative University, Sagaing
  2. Department of Commerce

Impact of Credit Risk Management on Microfinance Institutions' Performance in Mandalay

https://meral.edu.mm/records/9745
https://meral.edu.mm/records/9745
c31509f6-beab-4d90-b2a7-9c2152e27200
04276564-891a-417f-8fc3-5366970a1857
None
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Impact Impact of Credit Risk Management on Microfinance Institutions' Performance in Mandalay (Dr. Htet Htet Hlaing & Moe Wutthmone Shein) .pdf (155 KB)
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Publication type
Journal article
Upload type
Publication
Title
Title Impact of Credit Risk Management on Microfinance Institutions' Performance in Mandalay
Language en
Publication date 2021-08-30
Authors
Dr. Htet Htet Hlaing
Moe Wutthmone Shei
Description
Credit risk has long been a source of concern for bankers, as well as the rest of the business world, because the danger of a borrower failing to meet his obligations in full by the due date can significantly imperil a financial institution's performance. The goal of this study was to see how credit risk management affected Mandalay's microfinance institutions' performance. The research style used in this study is descriptive research design because it includes an in-depth analysis of credit risk management and its relationship to loan performance in microfinance institutions. Questionnaires are used to obtain primary data. The fourteen micro finance organizations licensed by the Financial Regulatory Department are the study populations; however, data is collected from seven microfinance institutions. Multiple regression analysis is used to examine the data. This
research reveals that there is a link between loan performance and credit risk management. The effects of credit risk identification, credit risk quality, and credit risk control on MFI loan performance are statistically significant. As a result, they have an impact on MFI loan performance since MFIs have a business strategy in place to detect risk and monitor loan
applicants' credit trustworthiness. Furthermore, MFIs provide a variety of loan packages, allowing borrowers to take out a variety of loans. Furthermore, MFIs impose fines on loan defaulters, as well as the signing of a binge contract. MFIs are reducing the length of time that borrowers have to repay their loans and lowering interest rates. Credit risk assessment
is not statistically significant on loan performance of MFIs because MFIs are weak periodically assessments for fund products and monthly review of loan performance and to recovery loan mechanism. The research indicates that all microfinance institutions should implement an accredit risk rating system after establishing a link between credit risk management and business performanc
Keywords
Credit Risk, Credit Risk Management, Firm Performance, Loan Performance, Microfinance Institutions (MFIs)
Journal articles
The Myanmar Journal
130-141p.
Volume 8,No.3
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