Credit Risk Management and Profitability in Commercial Banks in Sweden

Credit Risk Management and Profitability in Commercial Banks in Sweden

Ara Hosna, Bakaeva Manzura and Sun Juanjuan

Graduate School
Master of Science in Accounting
Master Degree Project No. 2009:36
Supervisor: Inga-Lill Johansson

Acknowledgements
After several months of hard work our thesis has been finished. Now it is time to thank everyone warmly who provided their kind assistance to us. First of all, we would like to thank our supervisor Inga-Lill Johansson, Associate Professor of our University, for her guidance all through our work. We would like to thank Andreas Hagberg, PhD Candidate, as well for giving us his constructive suggestions. We are grateful to Johan Sjömark, Credit Risk Control Department officer in Swedbank, for providing us helpful interview by using his wealthy knowledge in credit risk management area. The same appreciations are given to the risk management department in
Swedbank, for arranging this interview. Furthermore, we would like to direct our appreciations to our opponent groups for providing us useful feedbacks. Last but not least, we are thankful to Eva
Gustavsson and Wajda Irfaeya from Gothenburg University for facilitating us regarding the statistical analysis.
We also would like to express our thanks to IT and Library Services of the School, for providing professional software programs, books and databases. Without them, our thesis would not be finished. The dearest appreciations are directed to our families and friends, for giving us great support and help during these months. Special thanks to Sevara for being patient and “compassionate” to her mommy. Gothenburg, 24th of May 2009

______________________ __________________________ ___________________________
Ara Hosna
Bakaeva Manzura
Sun Juanjuan

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Abstract
Credit risk management in banks has become more important not only because of the financial crisis that the world is experiencing nowadays but also the introduction of Basel II.

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