ASSESSMENT OF RISK MANAGEMENT PRACTICES: THE CASE OF DEBUB GLOBAL BANK S.C

Abstract

The purpose of this study was assessing the risk management practice in the case of Debub Global Bank of Ethiopia using twenty quarters of data between the year 2018 and 2022. This assessment includes variables such as non performing loans ratio, loans issued on clean basis, short-term loan ratio, loans allocated to top borrowers, time deposit ratio, loan deposit ratio, and interest expense ratio. In doing this descriptive research design, qualitative research approach was used. The data collected from the bank’s risk and compliance department quarterly generated reports. The study relied on secondary data. The collected data was analyzed with descriptive statistics such as Percentage, mean and standard deviation through STATA version13 software. The data presented in tables and graphs. The findings reveal that the bank is not operating within the internal limit set by its risk management program and that it needs to take steps to reduce the gap. The recommendation made in line with the findings includes that the bank should attempt to regularly update its risk limit and should keep working within the set limit.