Credit risk management in Banks and an application

Today?s the actors in the credit market have increased rapidly. Customers face with difficulties about deciding which bank or credit product to choose, because of the varieties of credits and increasing competition of banks about credits and interest rates. Moreover, there are significant differences between initial costs and actual costs..At this circumstances, for banking stuff it is a hard and attention need work to manage credit risks and making their jobs effectively. For this reason, banks and board of management of this banks are focused on credit process especially for managing credit risks. Banks are observing the market conditions and establishing credit observing units to cope with non performing credits. Some customers are unconsious and generally they do not read the agreements carefully before signing, due to these reasons this study will be useful for both bank customers and bank staffIn this study we mentioned about non performing credits, how they become non performing credit, what can the bank do to cover them and how to liquidate these credits.