Abstract:

Focus: the objective of this study is to identify the approaches used by microfinance banks in managing credit risk. Furthermore, to examine the applicability of introducing the element of consultancy (consultant) in the equation to reduce credit risk.
Methodology: Primary data was used, which was collected through structured closed-ended questionnaires and semi-structured interviews. Purposive sampling was used to select credit officer and loan officer from each of the sampled bank. 6 Interviews were also conducted from manager and higher level management regarding the applicability of consultancy concept.