Credit Risk Management and Profitability of Commercial Banks in Hargiesa , Somaliland

ABSTRACT The study investigates the credit risk management and profitability of commercial banks in Hargeisa , Somaliland. The study was guided by three research objectives. First was examining the profile of respondents in term of Age, Education and Gender. Second the level of credit risk management in Hargeisa , Somaliland. Third the level of profitability commercial bank in Hargeisa , Somaliland, Four to establish if there is significant relationship in credit risk management and profitability of commercial banks, and the study used descriptive survey research design to investigate the simple of this study was 114 respondents from managers and staff of commercial banks in select district Hargeisa, Somaliland. The findings from the study were. The profile of respondent found that number of male 50%, respondent according the number of female were 50%. In regard to education to education level respondent who are certificate level 11.4%, those who have diploma are 19.3%, and the majority of the respondents said they held first degree or a Masters (31.6% each). These two categories represented 63.2% of the entire sample. PhD degrees were the least with 6.1%. The majority of the study respondents were in the 31-40 age groups (37.7%). The 21-30 age groups were the second with 34.2% while 18-20 was the third with 19.3%. The least were in the 41-50 (7.0%) and the 51 and above category (1.8%).58% of the respondents said they were married while 56% said they wen:! single. The majority had worked for between 1-2 years (44.7%) and 1-2 years (29.8%). Those who said they had worked for 7 and above years were the least, representing 3.5% of the total respondents. The majority of the respondents had worked for less than a year (47%). Those who had worked for 2 - 4 years where 38%, the least had worked for 8 years and above Finally the result obtained showed that there is a relationship between credit risk management and profitability commercial banks in Hargeisa Somaliland. 

TABLE OF CONTENTS 

DECLARATION A 

DECLARATION B ii 

APRORAL SHEET iii 

DEDICATION iv 

ACKNOWLEDGEMENT V 

ABSTRACT vi 

TABLE OF CONTENTS vii 

LIST OF TABLES X 

CHAPTER ONE 1 

THE PROBLEM AND ITS SCOPE 1 

Background of the Study 1 

Statement of the Problem 5 

Research Objective 5 

General Objectives 5 

Specific objectives 5 

Research Questions 5 

Hypothesis 6 

Scope of study 6 

Geographical scope 6 

Theoretical scope 6 

Content scope 6 

Time scope 7 

Significance of the Study 7 

Operational Definitions of Key Terms $ 

vii 

CHAPTER TWO 

REVIEW OF RELATED LITERATURE 

Concepts, Opinions, Ideas from Authors/ Experts 

Theoretical Perspective 

Related Studies 

CHAPTER THREE 

METHODOLOGY 

Research Design 

Research Population 

Respondents of the Study 

Sampling Procedure 

Research Instrument 

Validity and Reliability of the Instrument 

Data Gathering Procedures 

Data Analysis 

Ethical Considerations 

Limitations of the Study 

CHAPTER FOUR 

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 

CHAPTER FIVE 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 

FINDINGS 

CONCLUSIONS 

RECOMMENDATIONS