Determinants of Credit Risk Management System Design in Selected Private Sector Banks in India

Abstract

In the banking industry, asset quality is critical for financial stability and sustainable growth and is a precondition for credit risk management. The aim of the given study is to understand the factors which affect the design of credit risk management system of the selected private sector banks in India. It considers elements related to the external business environment, financial resources, technological infrastructure, managerial commitment, regulations and organisational structure. The current study is descriptive and analytical research method, applying a structured questionnaire to get primary data from respondents of banking professionals who are purposive sampling as 200 respondents. Analysis of the data is suggested using descriptive statistics, correlation and multiple regression. The research is aimed at discovering the factors influencing the system design in credit risk management and giving recommendations on how to enhance the process of risk assessment, monitoring and control.