Sale of Loans and Credit Risk Management Practices of Savings and Loans Companies : Evidence from an Emerging Economy

The current study assessed the credit risk management practices of saving and loans companies in the Sunyani Municipality of the Bono region of Ghana. With a positivist paradigm, the study adopted a descriptive research design. Using purposive sampling method, a sample size of fifty seven (57) respondents was utilized. The study revealed a strong and positive correlation between credit risk management and financial performance of the savings and loans companies. Erratic policy rates were found to have negative impact on the operations and profitability of the companies. The study recommends robust supervision and strict adherence to sound credit management practices for sustainability and profitability of the savings and loans companies