Management control of credit risk in the bank lending process

Management control of credit risk in the bank lending processA casestudy to explore improvements from a managerial perspectiveAt the start of this project -back in 1998- new technologies and ideas were emerging among a new generation of financial engineering professionals who have been applying their model-building skills and analysis to measure credit risk. The emergence of this more sophisticated credit risk information resulted in a lot of questions about the way credit risk is controlled in the bank lending process. Next to that, Basel II is also stressing the importance of a bank's control environment in setting capital requirements. By producing insights about the contribution of more sophisticated credit risk information to effective management control of credit risk, this study has endeavoured to make a contribution to knowledge in this field.