Authors : Felix M. Namoonde

Volume/Issue : Volume 11 - 2026, Issue 3 - March

Google Scholar : https://tinyurl.com/m4wmynxh

Scribd : https://tinyurl.com/46fcau4w

DOI : https://doi.org/10.38124/ijisrt/26mar1247

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Banks are fundamental to economic growth, yet their profitability remains intrinsically linked to the efficacy of their credit risk management (CRM). History, from the 2008 global financial crisis to recent high-profile failures like Silicon Valley Bank (2023) and Investrust Bank (2024), underscores that weak CRM can destabilize institutions and erode financial performance. This study examines the impact of CRM practices on the profitability of Indo-Zambia Bank, employing an explanatory sequential mixed-methods design. Quantitative analysis of financial records and staff perceptions was integrated with qualitative insights from bank personnel to provide a holistic assessment. The findings reveal a significant positive relationship between effective CRM and profitability, with the integrated CRM lifecycle, particularly monitoring and recovery, emerging as the strongest predictor. While the bank operates within a structurally sound CRM framework, its performance is mediated by critical implementation gaps, including deficiencies in staff training and inconsistent monitoring practices. Furthermore, the bank's non-performing loan (NPL) trajectory, although below the industry average, mirrors troubling sector-wide trends, suggesting that systemic challenges can potentially overwhelm internal controls. The study concludes that translating a robust risk framework into sustained profitability requires a strategic shift from policy design to operationally seamless execution. It offers actionable recommendations for strengthening post-approval monitoring, investing in early-warning technologies, and enhancing recovery mechanisms to fortify the bank's financial resilience.

Keywords : Credit Risk Management, Bank Profitability, Non-Performing Loans, Emerging Markets.

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