Credit risk management practices and profitability among selected lending institutions in Panabo City

Abstract

This study aimed to determine the significant relationship between credit risk management practices and profitability among selected lending institutions in Panabo City. This study is based on an adapted and modified questionnaire from George (2015), and Nzitunga (2019). The random sampling technique approach was utilized to collect the data from 55 respondents varied from the managers, credit officers, and loan officers from selected lending institutions in Panabo City. The study employed a quantitative non-experimental and correlational method. Mean and Pearson-r were used to analyzed the credit risk management practices and profitability among selected lending institutions in Panabo City. The study revealed that the selected lending institutions in Panabo City in terms of credit risk management practices has a very high result and yield an overall mean of 4.69. In terms of the level of the profitability of selected lending institutions in Panabo City, it garnered also a very high result with 4.73 overall mean. Furthermore, the study revealed that there is a significant relationship between credit risk management practices and profitability. The results showed a computed r-value of 0.872 associated with the p-value of 0.000, which is less than the 0.05 level of significance, indicating that the null hypothesis (ho) is rejected.