Management of credit risk for sustainability of army welfare department savings and credit cooperative limited

Abstract

The objective of this study was to investigate Management of Credit Risk for Sustainability of Army Welfare Department Savings and Credit Cooperative Limited. The data were collected through the interviews with executives such as division directors or vice directors who were requested to provide guidelines how to sustainably manage credit risk. The research results revealed the overall credit risk management which was highly focused on the credit monitoring, follow-up management, borrowers’ qualification inspection, borrowers’ financial competence, and borrowers’ secured credit. The management of the Army Welfare Saving Cooperative Limited demonstrated decent understanding of how to prevent future credit risk proficiently and effectively considering from their systematic procedures of how to monitor and follow up the loans according to the credit risk management plan. Problems in relation to credit risk was rarely found as the allowance for doubtful accounts had been set, which resulted in sustainable credit risk management and fluent administration suitable for the economy in the meantime as well as the future time.