Credit Management Practices in Islamic Banks

This assignment delves into the crucial topic of credit management practices within the context of Islamic banking. It investigates the various factors that shape these practices, encompassing both internal elements such as lending services and credit risk management strategies, and external forces like macroeconomic dynamics and regulatory frameworks. The analysis draws upon a range of resources including academic journals, books, and online publications to provide a comprehensive understanding of the challenges and opportunities facing Islamic banks in effectively managing credit risk.

RESEARCH PROJECT
“To evaluate bank's lending practices and issues related to credit
management: a study on Barclays Bank”

Table of Contents
CHAPTER 1- INTRODUCTION....................................................................................................1
1.1- Research project description................................................................................................1
1.2- Research aims and objectives..............................................................................................1
1.3- Literature review..................................................................................................................2
1.4- Research Methodology........................................................................................................2
1.5- Structure of the project........................................................................................................3
CHAPTER 2- LITERATURE REVIEW.........................................................................................4
2.1- Introduction..........................................................................................................................4
2.2-..............................................................................................................................................4
CHAPTER 3- RESEARCH METHODOLOGY.............................................................................7
3.1- Methodology, method and techniques.................................................................................7
Research approach......................................................................................................................8
Research design...........................................................................................................................8
Research philosophy...................................................................................................................9
3.2- Sampling..............................................................................................................................9
3.3- Data collection...................................................................................................................10
3.4- Ethical considerations........................................................................................................10
CHAPTER 4- DATA COLLECTION AND ANALYSIS............................................................11
4.1- Data collection...................................................................................................................11
4.2- Data analysis and discussion..............................................................................................14
CHAPTER 5- CONCLUSIONS AND RECOMMENDATIONS.................................................19
5.1- Conclusions........................................................................................................................19
5.2- Recommendations..............................................................................................................20
5.3- Areas for further study.......................................................................................................20
REFERENCES..............................................................................................................................22

CHAPTER 1- INTRODUCTION
1.1- Research project description.
Lending services of the bank is about giving loans to the customer and credit
management is managing various credit activities. Rationale of the research shows the proper
and logical evaluation of the topic or aim. It is found that there are many problems which are
faced by the banking industry. These issues are needed to be solved very effectively because
these can very adversely effect the public. Almost each and every person do some transaction
with the bank. That's why the problems and issues which are faced by this sector affects very
much to people (Waemustafa, W. and Sukri, 2015). Lending practices and credit management is
the burning issue in the banking industry. That's why it is necessary to conduct the research on
this topic. It is done to find out saying of various authors on the research topic. It was provided
by university which has also created an interest among experts. By having an appropriate
learning about the subject the issues can be resolved.
1.2- Research aims and objectives.
Aims
The aim of this research is to find the issues in Barclays Bank's lending services and
credit management.
Objectives
 Conceptual framework of bank's lending services and credit management.
 Issues related to the credit management activities. Relationship between lending services and credit management.
Research questions
 What are the lending services of and credit management activities of the cited bank?
 What are the issues which are faced by the bank in their management of the credit?
 Is there any relation between lending services and credit management of the bank?
This research is with the aim of evaluating bank's lending practices and finding the issues
which are related to the credit management. These two are related with each other. Bad lending
practices will make credit management also non- effective. This research will highlight all the
issues of Barclays Bank in relation with their lending practices and credit management. It is very
important to do this research because there are many people who are related with bank. They can

be adversely affected by the non- effective practices of the cited bank. Practices must be good to
make the effective and healthy relationship with the customers. This is to make sure that all the
customers of the bank must be satisfied (McNeil, Frey and Embrechts, 2015). Credit
management is the activity which manages all the credit facilities given to the public. In this
person takes loan from the bank pays it back with the interest. The objective of credit
management is to keep all the records of persons who had taken the loan and who had paid it
back. Lending practices of the cited bank must be good because it affects the credit management.
Bad practices will make the bank to give loan to the non-efficient person who will not be able to
pay it back. It will disturb the management of credit in Barclays Bank. The main objective of the
research is to find about the conceptual frame work of bank's lending system and credit
management, issues which are related to the credit management and effect of the lending issue
on the credit management. The factor which has contributed in the research project selection is
that, the selected topic is burning issue in the world.
1.3- Literature review.
It is that part of the research which shows about the sayings of the different authors about
the topic. The authors can be in favour or can be against the findings of the research topic.
Different sources are to be studied to write the literature review effectively and efficiently. There
are many sources on which basis this can be written. Those can be books. The content which is
included in the literature review is about the information which is related with the factors which
are affecting the Barclays Bank. It is about analysing the various information which is got by the
different sources (Brown and Moles, 2014). It analyses all the saying of authors regarding the
objective of the research. Literature review is very effective for gaining the information about
topic and what different authors says about that. There are many authors who has kept the view
on this topic. Such as Waemustafa, W. and Sukri, (2015), McNeil, Frey and Embrechts, (2015),
Mengze and Wei, (2015) etc.
On the other hand in the view of author Yadav and Pathak, (2014) issues in the credit
management brings many unfortunate events. This can surely lead to the closure of banks. Not
handling these issues with the efficiency can lead to very hazardous situations. Proper training is
to be given to all the employees who are working in the bank. This will increase their efficiency
and they will effectively do the activities of credit management.

In accordance with the author Banks, (2016) there are many types of loans which the
banks provide to its customers. This service of the banking sector should be handled very
carefully because it can bring issue which will be hard to be coped with. The author says that
these services are the heart of the banks. Many customers are there who are in the need of loan.
Evidences must be gained by the banks to ensure the financial stability of the customers. This
process will make the system of lending services better. The services which are most important
for the bank should be handled with effectiveness and efficiency.
1.4- Research Methodology.
It contains the various methods which can be used for finding the information which will
be supported for the topic. Many findings are given by using the measures of research
methodologies. Proper analysis can be done by this process. It gives the practical and exact
information about what others think about the aims and objectives. It gives to the point
information. It is very much beneficial for the researchers. They can collect all the information
related to the topic effectively and efficiently. It is find about the various lending practices and
credit management. This includes qualitative and quantitative findings. Various methods which
are included in the research methodologies are as follows:
 Research approach- It is about the scientific method which is used for doing the research.
There are two types of approaches (Brooks, 2015). They are inductive and deductive
approach. Inductive approach is that in which new theory is derived in accordance with
the gained information. They are based upon the qualitative research. On the other hand
deductive approaches are that which are based upon the existing theory. They are based
upon the quantitative research.
 Research design- It shows the way in which research can be conducted. The process
which is to be followed is preplanned and it is very helpful in finding the right results.
There are various designs which are formed under this. Those are descriptive and
exploratory. The descriptive design shows the detailed study about the topic. On the other
hand exploratory design shows the various aspects about the objectives of the study.
 Data collection method- This is about the collection of information by using proper and
suitable method in accordance with the aims and objectives of the research. Data can be
collected by the primary or secondary methods of collection. The primary data are

collected by the authentic and by using the present sources. On the other hand secondary
data is the one which is already collected by others.
 Research philosophy- In this research is done on the basis of some pattern. There are 2
types of philosophy which are used, they are interpretivism and positivism (Mengze and
Wei, 2015). In the interpretivism qualitative tools are used. On the other hand in the
positivism quantitative tools are used.
 Data analysis- In this data which are collected are analysed and presented in the proper
way. This can be done by the qualitative and quantitative methods.
 Sampling method- In this method of research methodology sample is taken from the pool
of information to judge about the average correctness of the topic. It helps to decide what
will all the information be about.
1.5 Action Plan
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11
Identification of research topic
Topic is selected after
discussing with tutor,
Determining the rationale
behind the study and
significance are defined.
literature review is conducted
to collect secondary data
related to topic,
Determining objectives and
aim of the study
For collecting primary data,
researcher approachers to
managers of Marks & Spencer
Selection of research approach
Research methodology used in
the study defined properly.
Questionnaires related to
impact of reward system on

employee motivation is
developed
With the help of survey and
questionnaire methods,
information from respondents
collected.
Arrangement of gathered
information in a chronological
order.
Thematic analysis technique is
applied to the present
outcomes.
Interpretation of collecting data
and findings of research in
systematic manner.
At the end, recommendations
and suggestions for further
study are provided.
Presentation is developed to
present the findings.
Submission of the report
CHAPTER 2- LITERATURE REVIEW
2.1- Introduction
Literature review is the part which contain the information which is directly related with
the aims and objectives of the research. It includes the various views of different authors on the
topic. It critically evaluates all the factors which are related with the industry and which can
affect the workings of the bank. It mentions about all the information which are in relation with
the research topic. This literature review will be based upon the concept of lending services and
credit management (Singhirunnusorn, Donlakorn and Kaewhanin, 2017). It will also cover the
issues which are related credit management and effect of the lending practices on the credit
management of the bank. Views of the different authors will be evaluated on these topics. The

resources which were used to make the literature review are books and journals. It will answer
all the questions in accordance with the research.
2.2
Issues in credit management
As per the author Waemustafa, W. and Sukri, (2015)credit management in the banking
industry is the biggest issue which is faced by the many banks working in this industry. These
issues bring very bad impact upon the reputation of the banks in the market. It makes them to
face the decrease in their market share. The banking industry faces losses due to the issues of
credit management. Bank needs to use all its strengths to cope with these problems. Credit
management is the activity which is very useful for the industry to manage all their credit in the
effective and efficient manner. Issues in this activity can lead the bank to face many problems. It
can be that big which can force the bank to get closed. The cited industry with good practices
and processes in the management of credit grabs the attention of many customers towards them.
It increases their reputation in the market.
On the contrary the author McNeil, Frey and Embrechts, (2015) says there are many
credit risk which can be raised due to mismanagement in the credit practices. These risks can
bring many loses for the industry. Not managing the credit in the proper way will make the
customer bad debts who had borrowed some amount from the bank. Persons who are not able to
pay the loan amount back to the banks are termed as credit risks. These risks arise due to
irresponsible behaviour the manager of this process or activity. The author thinks that the credit
problems can be solved by the managers if they effectively given the loan to the customers after
doing the proper research only. Strong and effective systems can be made to handle the credit
activities of the bank. It will manage these activities in proper way and will cope with all the
issues which are related to this.
In the view of author Brown and Moles, (2014)there are many problems other than credit
management issues in the banking industry. Issues related to this occurs in the banks but are not
important as much as other problems. Issues regarding the expectation of the customers are very
much important than this. Customers are those who are treated as the god. But their range is very
much decreasing in the banking industry.
As per the view of author Brooks, (2015) credit management is not only managing the
loan. It is about the whole credit system in the industry. Credit management will include all the

activities which are related to practices followed for giving the credit. Not good credit system
will surely lead the company towards facing the issues of credit management.
Lending services and credit management
According to the author Mengze and Wei, (2015) lending services are that activities
which are performed while giving loan to the customers. These services should be very much
effective to attract many new consumers towards them. Non- effectiveness of theses services will
lead the cited industry to face many problems. These issues are that bad which can make the
bank to face high amount of losses. So this is necessary to handle these activities with
effectiveness to save the banking industry from facing these problems. This issues can easily be
coped up by using the efficient methods and systems of lending services. Practices which are
done on the basis of lending should be only sanctioned by doing proper research. Full
background of the customers should be checked who had applied for the loan. Not doing this can
lead the bank to face many problems in the future when the time will come to repay the amount
of loan by the consumer. It will also affect receiving of interest amount on the loan.
Relation of lending services and credit management
As per the view of author Karadag, (2015) lending services and credit management
activities are related with each other. Any situation which brings the non- effectiveness of the
lending services in the cited industry will definitely have some bad impact on the credit
management activities. These two are interrelated with each other. Problem in one will cause
surely cause some issues in the other. This will decrease the reputation and goodwill of the
banking industry in the market. Lending services must be effective for the proper credit
management. It will help the company to recover all their losses and make profits. This states
that lending services and credit management both are interlinked to gain success for the banking
industry.
In accordance with the view of author Cantrell, McInnis and Yust, (2013) the services of
the bank which are based on the should be done in the effective way to make the credit
management proper. Proper credit management of the bank will save losses and increase the
profits and advantages. The bank whose lending services are good will attract many more
customers towards them. Not doing proper management of the credits will lead them towards to
face many issues and present customers will also be loosed. Loosing consumers is not at all good
for the banking industry who is already loosing its market share. Proper management can be

done by the effective manager. Mangers who are irresponsible will bring situations which will
not at all be good for the banking industry.
On the other hand the author Athanasoglou, Daniilidis and Delis, (2014) says that lending
services are that which provides the loan to the customers by doing the proper check. Credit
management is the activity which is directly related with the effectiveness of lending services.
Problem arises in the bank's credit management than authority directly check the lending
services, because they both related, if some defect is found in the management of credit than it
will be surely because of some problem in the lending services.
On the contrary author Chiu, (2014) say that lending services and credit management are
not directly related they are indirectly related. Problems in the management of credit can also be
because of some other problems. Proper analysis should be done to find out the problem which
is causing mismanagement in the banking industry. Whole industry faces some problems with
time, these problems can only be solved by the effective management. Internal control system of
the bank should be checked thoroughly to find out the issues of credit management.
As per the view of author Blankespoor and et.al, (2013) issues in the credit management
will lead to make some credit decisions which will also affect the lending services. Many factors
are the reason for management of credit. These factors are to be handled very carefully and
should be completed by following the exact procedure which is decided by the management.
This states that lending services has very deep impact on the credit management activities
of bank.
CHAPTER 3- RESEARCH METHODOLOGY
Resources required
It can be expressed that every researcher is required to match its resources effectively in
order carry out a research successfully and obtain suitable findings. At the time of carrying out a
study, different types of resources such as financial, technology and human resources to gain the
best possible outcomes. The information has collected from both secondary and primary sources
of information.
3.1- Methodology, method and techniques.
It is that part of the research which shows about the qualitative and quantitative
information which will be related to the topic of the study. Research methodology helps the

scholars or learners to know and gain the complete subject matter which will eventually make
them to find their own interpretation. It makes them to make the decision in accordance with all
the information in this part. The whole research will be effectively and efficiently done by
properly doing and selecting the research methodology (Creswell and Poth, 2017). There are
many methods and techniques which are used to make this part more effective. There are many
models which are made by the researchers on with time. These models make doing research is
more efficient and easy way. This part of the report is about the various types of evidences which
are found while working on getting the information. Researchers chose the suitable method
which will be the best for doing the study on the cited topic. Aims and objectives of the research
are effectively achieved by this process. It is very important to select that technique which will
be most suitable for conducting the investigation (Creswell, and Creswell, 2017). Here the
methods and techniques which are appropriate for the current investigation are explained in the
detail.
There are many types of methods and techniques which can be used to do the
investigation. These models have their own procedures to be followed in the research. They are
on the basis of qualitative and quantitative presentation. Qualitative is that approach which show
the detailed analysis of the data. On the other hand quantitative approach shows the statistical
methods to show the information about the research topic (Bernard, 2017). It is important to find
the proper method which can be used and will be most suitable for the conducting the whole
research.
Research approach
It is that method the research which is done on the basis of two approaches. This
technique help in doing the proper exploration of the information. The approaches which are
used in this are deductive and inductive. Deductive approach is that which is on the basis of
making new theory or method to conduct the study. On the other hand there is inductive
approach which is on the basis of conducting the investigation by existing theories and methods
only. For this research the inductive approach has been used (Lewis, 2017). It is qualitative. The
investigation has been properly done because of this. Issues in the lending services and the
credit management can be easily found out by the adopting this research approach. Different and
effective results can be gained through the research approaches. It is very helpful in detailed
exploration of the data.

Research design
It is that method or technique which states about the procedure or process. These can be
used in formulating the information in better and efficient way. The exact process is given by the
research design to conduct the investigation. There are many design designs which can be used
to conduct this type of study (Flick, 2014). Such as meta-analytic, exploratory or experimental.
Very detailed explanation is given in this method or technique of the research. This method is
used with the help of many theories and models. This eventually help the researcher to find out
the various problems and issue which can occur while doing the study. By the help of this
technique situation can be analysed very effectively and easily. The design which is descriptive
in nature gives the detailed explanation about the facts and data. On the other hand there is
exploratory design is that which shows about the exploration of different models which are
suitable for the current topic of the investigation (Inductive and deductive approaches to
researches, 2013). It is known for the identifying the various problems which occurs in the
investigation. The experimental design carries the research on the basis of scientific tools. It can
be used to develop and make improvements in the theory which is specific. The study which is
done have the qualitative nature (Marshall and Rossman, 2014). Descriptive design has been
used. It had been very much suitable for conducting the investigation on the cited topic. Every
information related to the study has effectively analysed by this. The present research cover the
issues which comes in the lending services and credit management of the Barclays Bank. These
issues have very deep impact upon the reputation of the bank in the market and its share.
Research philosophy
It is that method or techniques which shows the pattern that can be followed while
conducting the study. To select the research philosophy is very important for the researcher to do
the investigation in proper and efficient manner. There are two types of philosophies which can
be used in the current study which are interpretivism and positivism. The philosophy of the
interpretivism is about the accumulating the data related to the study. This is qualitative in nature
because using specific tools. On the contrary there is positivism philosophy which is on the basis
of mathematical and scientific tools. The present research is of qualitative nature. It will show
the various issues which the Barclays Bank faces in its lending services and credit management
activities. The philosophy of interpretivism has been used (Zainal, 2017). By using the
philosophy of interpretivism the researcher can do effective and efficient analysis in the proper

manner. It shows the method which is chosen is the best for conducting the research and
analysing it.
3.2- Sampling.
It is technique which makes the researcher to select the sample from the data foe the
analysis of all the information which is collected. Sampling can be done on the basis of
probabilistic and non-probabilistic methods. The researcher has to decide what will be the best
method which can be used for the process of sampling (Yin, 2013). Probabilistic method is that
in which simple approach is used. In this all the information which is gathered is of equal in
nature and number. On the other hand non-probabilistic method is that which is done on the basis
of convenience. It means taking that sample which the researcher find convenient for him. Other
than these there is purposive method of sampling. It is used to find the proper sample which will
surely show that what is all the information is about. The present investigation is done on the
basis of purposive technique of sampling. It had helped in doing proper analysis of whole
research. 50 members are selected which had helped in giving the information for gaining the
effective results. The samples which are collected are not done in the specific way. They are
collected on the basis of random approach (Neuman, 2014). The respondents which are selected
are effectively related with the research topic which is issues in lending practices and credit
management of the Barclays Bank. Survey is done with 50 respondents to find the exact
information about the aims and objectives of the investigation.
3.3- Data collection.
It tells about the different methods which can be used to collect the data in effective and
efficient manner. It shows about different research problems. Data collection is the very
important part of the research because it shows about the exact information about the study. It is
the technique of getting that information which will relevant for whole of the research. The
methods which are used for the data collection are primary and secondary. Primary data
collection is that method which is used on the basis of sources which are existent (Richey and
Klein, 2014). On the other hand there is the secondary data collection method which is done on
the basis of data which is already collected by others. Both the methods are very much relevant
for doing the research. Own questionnaire is made in the primary data, whereas data which is
already collected is used in the secondary data. The present research has used secondary method.
In the first questionnaire for the survey has been made. In the second one records from the

previous books and journal is being used. 50 respondents are selected to analyse the issue in
lending services and credit management of the cited bank. The most suitable technique for this
analysis is collecting the secondary data.
3.4- Ethical considerations.
Ethical considerations are on the basis of moral. The researcher had not done anything
which is against the ethics. The information which is gathered is purely based on the hard of the
individual. Data which is collected is done with keeping all the moral values and principles in the
mind (Nicholls, 2017). It is very much important to conduct the whole research in proper and
efficient manner. Issues which are based on the ethics are very much needed to be considered
while conducting any type of the research. Morals values in the ethics shows about the various
standards which are to be followed in doing some study on the specific topic which contains
various aims and objectives.
CHAPTER 4- DATA COLLECTION AND ANALYSIS
4.1- Data collection
It is the technique which has used the methods to collect the data. In this method various
questions has been asked to the 50 respondents which are selected by the researcher. These
respondents are related the aims and objectives of the research. By doing this specialist will be
able to do the effective analysis of all the data and information which has been collected. The
outcome of this research will be communicated through the mail to all the respondents.
Questionnaire is filled by the respondent and gave it to the researcher which helped in
conducting the research on time.
Questionnaire
Name:
Age:
Gender:
1- Do you agree with the statement that bank is facing some issues in its lending services and
credit management?
 Agree
 Disagree
 Can't say

2- Do you think that lending services and credit management are related with each other?
 Yes
 No
 Don't know
3- Do you think that bank need to adopt some measures to solve the issues?
 Yes
 No
 Can't say
4- In your view what can be the method which will solve the issues?
 Giving training to managers
 Reducing the expenses
 Effective planning
 Implementing ideas to reduce the bad debts
5- Do you think that the measures adopted will give the effective results?
 Yes
 No
 Can't say
Theme 1- Facing issue in the lending services and credit management of the cited bank.
Do you agree with that bank is facing some
issues in its lending services and credit
management? Respondents
Agree 35
Disagree 10
Can't say 5
Theme 2- Relationship between lending services and credit management.
Does lending services and credit management
are related with each other? Respondents

Yes 25
No 15
Can't say 10
Theme 3- Finding the level to adopt measures to solve the issues.
Do you think that bank need to adopt some
measures to solve the issues? Respondents
Yes 40
No 5
Can't say 5
Theme 4- Methods to solve the issues.
Which method can be used to solve the
issues? Respondents
Giving training to managers 20
Reducing the expenses 5
Effective planning 10
Implementing ideas to reduce the bad debts 15
Theme 5- Effectiveness of adopting the measures.
Do you think that the measures adopted will
give the effective results? Respondents
Yes 34
No 10
Can't say 6

4.2- Data analysis and discussion
It is that part of the research which shows about the presentation of the work. Many aims
and objectives can be achieved by the data analysis. Researcher is able to give the relevant point
to point description of all the data and information.
Theme 1- Facing issue in the lending services and credit management of the cited bank.
Agree
Disagree
Can't say
0 5 10 15 20 25 30 35
Column B
The above graph shows that there are maximum number of people who think that the
bank is facing the issues in its lending services and credit management. On the other hand 10
persons do not agree with the statement. There are 5 people who don't know what to say about
this topic. This states that Barclays Bank is facing some issues in the lending services and its
credit management. This issues are very hazardous. They can bring many losses for the
organisation. The issues faced by the bank can be that bad that it can lead them to the closure.
Customers of the cited firm gets disappointed by problems in services provided to them.
Theme 2- Relationship between lending services and credit management.

Yes No Can't say
0
5
10
15
20
25
Column C
This graph states that there are 25 respondents who thinks that there is relation between
lending services and credit management of the company. On the contrary 10 persons do not think
that there is any relation. 5 people did not say anything about this. It means there is some
relationship between the lending services and credit management. Non-effective lending services
will definitely disturb the credit management of the bank. Many issues can occur because of this.
These issues can create that situations which will be not at all good for the Barclays Bank. That's
why it is necessary to make lending services better to manage the credit in effective and efficient
manner.
Theme 3- Finding the level to adopt measures to solve the issues.

40
55
Yes
No
Can't say
There are maximum number of people who thinks that the bank needs to adopt some
measures to cope and resolve the issues. On the other hand 5 people are not in favour of the
statement. 5 persons don't know what to say about the topic. It means adopting some measures
will definitely will give them advantages. It will help them to solve all the issues which are
affecting them to achieve their aims and objectives. Methods decided will be on the basis of
proper analysis of the situation. It will make their customers satisfied. Consumer satisfaction is
the need of every organisation in the banking sector. That's why it will definitely make the cited
bank to gain many advantages by adopting some measures to solve the issues in lending services
and credit management.
Theme 4- Methods to solve the issues.

0
2
4
6
8
10
12
14
16
18
20
Column B
The above graph shows that there are many methods which can be used to solve the
issues which the cited bank is facing in its lending services and credit management. 25 persons
think that giving training to the managers will resolve all the issues and problems. On the other
hand 15 people are in the favour of implementing creative ideas to reduce the bad debts. 10
persons thinks that effective planning will be the best. 5 persons thinks the best way to solve the
issues is to reduce the expenses of the bank. This states that Barclays Bank can adopt many
measures which will support them in solving the issues that they are facing. Giving training to
the managers will surely help them in resolving the problems. It will make the mangers efficient
and they will work in the effective way which will eventually solve the issues. Using creative
ideas in reducing the number of bad debts will also help the cited bank to face the situation in
effective manner. Bad debts arises because non-effectiveness of the credit management activities
in the bank. Implementing the ideas which will decrease its number will make the cited
organisation to solve all its issues. It means it is important to understand that which method will
be most appropriate in solving the issues of lending services and credit management in the
Barclays Bank to gain advantages.
Theme 5- Effectiveness of adopting the measures.

Yes No Can't say
0
5
10
15
20
25
30
35
Column B
This graph shows that maximum number of persons are in the favour of the statement
that adopting measures or methods will definitely bring some results. On the other hand 10
people are against the statement. They think that adopting methods will not help the bank,
whereas 6 people can't say about the topic. The above information states that the cited bank will
definitely gain some advantages and benefits in resolving the issues if they adopt the most
suitable method. Effectiveness of the measure can be judged by the proper monitoring process
after the implementation of the method. It can be only possible if the proper process is being
followed in the activity of resolving the issues.
CHAPTER 5- CONCLUSIONS AND RECOMMENDATIONS
5.1- Conclusions
This research concludes about the conceptual framework of the lending services and
credit management of the bank. Services which are based on the lending provides different types
of loan to the customers. Credit management is managing various credit activities which occurs
in the bank. There are many issues which are faced in the credit management. Bad debts of the
organisation increases due to this. There is some relation between the lending services and credit
management. Negative impacts of one will bring some negative effects in the other. Non-
effectiveness of the lending services make credit management activities face issues and
problems. These issues can be solved by using the appropriate method. Those methods can be

giving training to mangers, reducing the expenses, making the effective plan and using creative
ideas to reduce the number of bad debts. Adopting these measures will help the Barclays Bank to
solve all their issues related to the lending practices and credit management. The problems which
are faced by the bank can lead them to face many types of losses. That's why it is necessary to
implement the method which will be best suited for the bank.
5.2- Recommendations
Facing the issues in lending services and credit management is the issues which is mostly
faced by the cited bank. That's why the management needs to give the attention towards these
issues and adopt some suitable methods to resolve them. It will make there reputation strong and
also increase their market share.
 The management can make the effective plan to resolve the issues. The plan will include
all the activities and procedure which will be followed in the implementation.
 Proper research can be done find out the exact reason because of which the issues are
arising in the bank. This will help the cited organisation to adopt the right method which
will be most suitable.
 Implementing creative ideas will make the bank to gain some advantages and will solve
their problem or issue in effective and efficient way.
 The management of the Barclays Bank should monitor the process of change which is
implemented to solve the issues. It will help them find all the problems which are arising
and use the appropriate method to solve them.
These are some recommendations to resolve the issues of lending services and credit
management activities.
5.3- Areas for further study
In this research it is only talked about the effect of lending services on the credit
management activities. But there are many areas which also affect it, either in positive or in
negative way.
 There are human resources whose work affects the activities. Efficient and effective work
of them will bring many kinds of advantages in the company. There non-effective work
can badly impact the most of the activities even the credit management in the bank.
 There are operational issues which are found in different types of operations in the cited
bank. This can also affect the credit management.

These are some areas which can be studied find out their effect on the credit management
activities of the bank. This states that not only lending practices but the other factors are also
there who can affect the management of credit in the Barclays Bank.

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APPENDIX
Factor Resources
Issues in credit management Abdulsaleh, A. M. and Worthington, A. C.,
2013. Small and medium-sized enterprises
financing: A review of
literature.International Journal of Business and
Management. 8(14). pp.36.
Cantrell, B. W., McInnis, J. M. and Yust, C.
G., 2013. Predicting credit losses: Loan fair
values versus historical costs. The Accounting
Review. 89(1). pp.147-176.
Lending services and credit management Brown, K. and Moles, P., 2014. Credit risk
management. K. Brown & P. Moles, Credit
Risk Management. pp.16.
Cantrell, B. W., McInnis, J. M. and Yust, C.
G., 2013. Predicting credit losses: Loan fair
values versus historical costs. The Accounting
Review. 89(1). pp.147-176.
Relation of lending services and credit
management
Engel, K. C. and McCoy, P. A., 2016. The
subprime virus: Reckless credit, regulatory
failure, and next steps. Oxford University
Press.
Karadag, H., 2015. Financial management
challenges in small and medium-sized
enterprises: A strategic management
approach. Emerging Markets Journal. 5(1).
pp.26.