Influence Of Risk Management Practices On Credit Performance In Islamic Banking At First Community Bank In Nairobi, Kenya (original) (raw)
2017, IOSR Journal of Humanities and Social Science
Islamic banks face new and unique risk stemming from their unique assets and liability structure as compared to conventional banks. This new risk exists due to compliance with Sharia requirements. Therefore this study sought to establish the influence of risk management practices on credit performance of first community bank (FCB) in Nairobi Kenya. Specifically the influence of risk identification on credit performance in FCB was examined. The study utilized risk management theory. A descriptive survey research design was employed with census approach used in data collection. The target population included branch managers, operations managers, and credit officer in the seven branches of FCB in Nairobi making a total of 56 respondents. Research questionnaires were used for data collection. Data was analyzed in form of descriptive and inferential statistics. Analysis was done using Statistical Package for Social Sciences (SPSS) version 24. The study established that risk identification had significant relationships with the credit performance in FCB. It was concluded that risk identification played a key role in credit performance of the bank. The researcher recommended that the board of management should enhance risk management policies that would improve their risk management practices.
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