Credit risk management during the financial crisis

Abstract

This thesis uses a 2009–2016 case study to investigate Greek banks' credit risk management. The research examines the banking sector's resilience and the effectiveness of these measures. This investigation focuses on systemic actions implemented by four Greek institutions and these indicators. Greek finance was heavily impacted by the financial crisis. Financial institutions' capital sufficiency became a problem during the recession and uncertainty since non-performing loans grew, profitability declined, and the economy was uncertain. Financial institutions needed a variety of risk management measures to retain liquidity, improve operational performance, and reduce credit risks. To identify concerns early, they increased surveillance, tightened credit examination, and improved loan approval. Restructurings, write-offs, and sales were used to address non-performing loans. The research suggests that financial organizations need good credit risk management to survive crises. Greek banks survived the financial crisis by managing credit risk, maintaining capital, and improving operational efficiency. The thesis concludes that credit risk management strategies must be constantly improved using new methods and technology. It adds that financial institutions and other businesses should use sustainable development approaches for social and environmental sustainability. Global finance has much to gain from Greece's financial turmoil. Greek banks have overcome significant challenges by focusing on credit risk management. The Greek financial sector can build a successful future for its population by stressing innovation, sustainability, and growth.