Implementing the 5C’s of credit assessment in credit processing department: a case study of Bank Kerjasama Rakyat (M) Berhad, USJ branch / Nur Athirah Ngah

The purpose of this study is to examine the implementation of the 5C’s of credit assessment approach in credit processing at Bank Kerjasama Rakyat (M) Berhad, USJ Branch to evaluate loan proposals and also to recognize the gap between theory and practice concept of the 5C’s credit approach used to measure the credit worthiness of the borrowers. To study the subject matter even further, the researcher had used two approaches in gathering the views and the data. The first one is through the primary data. The researcher interviewed the people from the Bank Kerjasama Rakyat (M) Berhad, USJ Branch itself. Besides that, the researcher also does observation to get more details information on this case study. Secondly, the researcher used the secondary data. The researcher had gathered the views and data from previously published case studies and researches. The results reveal that the Bank Kerjasama Rakyat (M) Berhad, USJ Branch implements all the 5C’s of credit assessment approach in determining the credit worthiness of the borrowers. Besides that, the bank used other than these 5C’s of credit approach which are competition approach and credit structure approach in order to grant credit to the borrowers. For a better credit granting process, the bank must operate well-defined credit granting criteria which include a clear indication of the bank’s target market and a thorough understanding of the borrower as well as the purpose and structure of the credit, and its source of repayment.