The Impact of Effective Credit Risk Management Systems on the Survival of Microfinance Institutions | Chapter 3 | Current Topics on Business, Economics and Finance Vol. 6

 This book episode aims to build on existent research to examine the impact that an effective and effective credit risk management method has on the survival of microfinance. Like some other financial organization, microfinance institutions encounter miscellaneous forms of risks but their intensity is on account of their small sizes and their volume of movements. Of all the risks a financial organization could face, credit risk is individual of the most severe.  A cluster savoring approach was employed in this place study consisting of 200 credit customers and 80 employees of a major superior microfinance institution in Cameroon. Primary dossier was collected through the use of a devised questionnaire, interview, and personal attention. Results show that there were a good number of lapses in the credit risk administration system as very unmonitored provisions, a poor improvement procedure, credit executives without an instructional background in the field, manual killing of some loans, slow credit administration processes, the bad faith of consumers, and poor follow-up of loans reported. It is vital to note that the endurance of every Financial Institution display or take public how it can effectively and capably manage allure loan portfolio. It is so, of critical importance for each financial organization to have an adequate and effective credit policy manual, credit process, competent credit group, tight loan improvement procedure, and tight control arrangement for its supplyings if it must survive in this place highly competitive area having customers who are ready to impose upon any loopholes.

Author(s) Details:

Ruth Endam Mbah,
Department of Business and Economics, Bethany College, Lindsborg, KS, USA.

Please see the link here: https://stm.bookpi.org/CTBEF-V6/article/view/10637

Determining the Role of Microcredit in Women Empowerment and Poverty Alleviation in Edo State, Nigeria

 In Edo State, Nigeria, the study focused on the impact of microcredit in women's empowerment and poverty alleviation. Women account for the bulk of poverty in society; they have endured misfortune as a result of socioeconomic inequity and gender discrepancy. Women's access to economic and income-generating assets such as land and finances is limited. Microcredit is often considered as a potent tool for women's empowerment and poverty alleviation. The study focuses on microcredit's significance in empowering women and reducing poverty. The goal of this research is to see how microcredit affects women's empowerment in the study area. It identifies the sources of microcredit for women, the impact of microcredit on women's income, savings, and investment levels, and the barriers to women's access to microcredit. A well-structured questionnaire was used to collect data for the study, which was given to 100 women in the study area who had access to microcredit. The respondents were chosen using a two-staged sampling technique. The data was analysed using descriptive statistics and regression analysis. The majority of women in the research region received credit from four microcredit institutions in Edo State, with the majority (33.33 percent) obtaining N30,000.00 or more, according to the data. Family size and loan volume had a favourable and significant impact on respondents' income. Women's income and savings increased as a result of access to microcredit, with a difference in income and savings of N225, 809.50 and N9, 772.70, respectively, compared to their income and savings before to accessing microcredit. This showed that microcredit can be utilised to boost women's income and savings, allowing them to live better lives. As a result, it is suggested that the government help raise awareness of microcredit institutions' activities and credit functions through radio, television, and print media, so that more women are aware of their ongoing activities. More resources for these microcredit organisations should be made accessible so that more women can profit from the programme.

Author(s) Details:

K. O. Ilavbarhe,
Department of Agricultural Economics and Extension Services, University of Benin, Benin City, Nigeria.


O. B. Izekor,
Department of Agricultural Economics and Extension Services, University of Benin, Benin City, Nigeria.

Please see the link here: https://stm.bookpi.org/NIEBM-V6/article/view/6193