Credit Risk Assessment of SMEs in Cameroon: Limitations of Classical Approaches and Proposal of an Alternative Model to Increase Financing

Alain Samuel Kitti Kitti; Pr. Oscar ASSOUMOU MENYE

doi:10.34257/GJMBRC256670

Authors

Alain Samuel Kitti Kitti
Pr. Oscar ASSOUMOU MENYE

Keywords:

Keywords : financing gap, new approach, credit risk measurement adapted to local realities, qualitative thematic content analysis..

Abstract

This article analyzes the Cameroonian banking system and the SME financing gap, highlighting the benefits of a new approach to credit risk measurement adapted to local realities. Based on a qualitative study including twenty (20) semi-structured interviews with bank managers (03), credit analysts (10), account managers (03), internal controllers (01), financial department staff (01) and risk officers (02), supplemented by a documentary and thematic analysis, this research shows that adopting an approach that integrates capacity building for promoters, financial management support, innovation in financing products, credit structuring and monitoring, as well as the promotion of networking and entrepreneurial culture, is a promising prospect for granting credit to SMEs. Risk assessment based on local criteria such as project soundness, entrepreneurs' reputation and track record, or the use of informal guarantees, promotes trust, solidarity and synergy among promoters, similar to cooptation and tontine mechanisms. This approach not only reduces the risk of default, but also stimulates job creation, wealth generation and economic development, while strengthening banks' appetite for SME financing.

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Credit Risk Assessment of SMEs in Cameroon: Limitations of Classical Approaches and Proposal of an Alternative Model to Increase Financing. (2026). Global Journal of Management and Business Research, 26(C1), 28-39. https://doi.org/10.34257/GJMBRC256670

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Author Biography

Pr. Oscar ASSOUMOU MENYE

Oscar Assoumou Menye is a Full Professor at the University of Douala, a financial expert for UNIDO, IMF, and the World Bank, and Head of the FICO Department.

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