ABSTRACT

With the advancing liberalization and globalization, Risk and credit risk management
is gaining a lot of importance. It is very important for banks today to understand and
managing identifying credit risk. Banks today put in a lot efforts in managing,
modeling and structuring credit risk. The main objectives of this study is to make a
thorough review of tools and techniques of risk and credit risk management practices
in private sector banks of Yemen and Indian as suggested by the relevant bodies and
experts under the leadership of Reserve bank of India and central bank of Yemen and
Compare this practices and differences in both countries and highlighting the key
features in order to awareness of the banks about credit risk management practices
and its proper implementation in the credit decision making.
In this dissertation, the researcher approached this study by using the descriptive
analytical method that is based on the description of a chosen sample from some of
the private sector banks that were chosen to represent the research community, where
methodology is based on a questionnaire approach. Questionnaires are designed to
answer the questions relating to hypotheses, and distributed to the credit risk
management department in those banks.
The most important results of this research indicate that there is differences between
Yemen private sector banks and Indian private sector banks regarding to practices of
risk and credit risk management. The findings also indicate different results between
Yemen private sector banks and Indian private sector banks regarding of
Understanding of risk and credit risk management. Moreover, The study show
medium to high degrees of positive attributes of the two samples toward The
Usefulness of Coordination Between the Governmental Sector and the Community in
the Credit Risk Management. Ultimately, The research ended up with a set of
recommendations, that in the study’s two selected countries banks, the most
important ones is: Both Yemeni and Indian banks managements should care about
the banking risks through forming special management and qualified staff for dealing
with risks and to improve their level and to give them more authority to make their
decisions. And convey their recommendations about risk management to the top
management.

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