The Relationship Between Credit Risk Management Techniques and Loan Default Rates Among
Abstract
This Study sought to investigate the relationship between credit risk management techniques and
loan default rates among commercial banks in Kenya. It was necessitated by the high and
increasing numbers of loan default rates among commercial banks in Kenya. It used quantitative
methods in applying regression and correlation analysis on the secondary data of all commercial
banks operating in Kenya. The result found out that there is a negative correlation between loan
default and credit risk management techniques among commercial banks in Kenya. Hence
commercial banks must efficiently manage their credit risks so as to lower the rates of default on
loans. An efficient credit risk management also leads to low interest rates thereby further
reducing default.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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