Credit Risk Management and Profitability in Commercial Banks in Sweden

In business affairs, in a nation’s economy, and in the international scene, money has made its permanent imprint thus credit has been clearly indicated and pertinently stressed. Credit’s advent has brought about numerous benefits to its users and misfortunes to others who get caught in the web of its unwise use. According to Fajardo (2011), credit is the ability to acquire something of value, such as goods, services, securities or money. Moreover, he added that credit transaction usually involves either to pay a definite sum of money. Whenever credit is mentioned, risk on the creditor’s part becomes apparent, thus businesses find best credit risk management.

Secondly I would also like to thank my parents, friends and family who helped me a lot in finalizing this project within the limited time frame.

The idea of “risk” is used in many fields and industries. There has been large efforts made towards the understanding of risk. Since, risk varies so much depending on the field of study, the need for learning about it is warranted. As can be imagined, the importance of risk in a market economy is crucial. In the 1990s, JP Morgan made the Value at Risk (VaR) a central component of its work efforts (Cecilia-Nicoleta, Anne-Marie, & Carmen-Maria, 2011).

Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the report.

I would like to send my appreciation and gratitude to David La Rooy, who has supported my journey in making this dissertation possible to do. I would like to give thanks to all the students who have participated in this dissertation.

And above all to God, for His fruitful help beyond measure and giving me strength to finish this thesis.

of this dissertation. I'm thankful for my supervisor who I have consulted to, John Cross who has

I would like to express my sincere gratitude to Marist College and the Lorenzo de’ Medici Institute for providing me an opportunity to study in the amazing city of Florence, Italy, and to the many people without whom this work would not have been possible. To my advisor, Sofia Ciuffoletti, who is a brilliant, extraordinary and inspiring professor, mentor, and friend. Thank you for challenging me and believing in me throughout this entire process---I would not have done this without your constant support and guidance. To the director of my masters program, Maia Wellington Gahtan, who has actively supported me and continues to encourage me in all my academic pursuits. I would like to thank all of my professors that have pushed me along the way

I take this opportunity to express my sincere thanks and deep gratitude to all those people who extended their whole hearted co-operation and have helped me in completing this project successfully.

Finally, I am most indebted to my thesis committee who played a major role in

In addition, the staffs were fantastic and very accommodating especially Jehad. He always supports and helps us through all the difficulties we have encountered. I would like to thank them for everything.

A genuine appreciation is expressed to all those who participated in my research particularly for their time and endeavor. Without him this research would not be potential.

This research would never have been accomplished without the guidance and help of a number of people. First, and foremost, I would like to thank my research advisor , Professor Durriya Haidar. Despite the difficulties and struggles we faced along the way, she encouraged me to fulfill my desired achievement .

A common saying tied to many new endeavors, “Without risk, there is no reward”. Financial institutions are no exception to this rule. The major risks that all financial institutions are exposed to are credit risk, liquidity risk, operational risk, market risk, business risk, reputational risk, systemic risk, and moral hazard (Perez, 2014). Of these top eight scenarios, credit, market, and operational risks are the three major risk factors that Jeanne D’Arc is focused on mitigating during and following the business service project.

I am deeply glad and appreciating my dissertation supervisor Dr. Itagaki for his expert advice and throughout the whole project