| dc.description.abstract | The general objective of the study was to examine the relationship between loan recovery practices
and loan portfolio performance of commercial banks in Uganda. Specifically it focused on centenary
bank Entebbe road branch as a case study. Specific objectives of the study was; to examine the
relationship between reminder strategies and loan portfolio performance of Centenary Bank, to
assess relationship between legal and procedural enforcement and loan portfolio performance of
Centenary Bank, to evaluate relationship between loan monitoring and loan portfolio performance of
Centenary Bank. In methodology, the researcher used a case study and correlation survey. The target
populating was centenary bank Entebbe road branch staff and customers. Among the staff included;
loan officers, banking of ficers, managers, credit Administrators, customer service consultants and
management trainees in total this population was 114 and the researcher sampled I 07 basing on
Kre_jcie & Morgan ( 1970) table. Unfortunately those who returned the questionnaires were 84.
Therefore, the researcher used a sample of 84 respondents . The study findings indicated that reminder
strategies had significant relationship on loan portfolio performance with higher overall mean of
3.906725 and correlation coefficient of(r=0.798 with a significant relationship ofO.OOO<O.OI) and the
equation of Loan portfolio performance was = 0.798 Reminder strategies + Constant. On the side of
Legal and procedural enforcement the overall mean was 3.7821 with a very strong positive but
significant associative relationship and coefficient of (r=0 .986; significant relationship of 0.000<0.01)
and the equation of Loan portfolio performance was = 0.986 Legal and procedural enforcement +
Constant. Finally Loan Monitoring its overall mean was 3.7673636 with a very strong positive but
significant associative relationship and correlation coefficient of (r=0 .984; significant relationship of
0.000<0.01) and the equation of Loan portfolio performance was found= 0.984 Loan Monitoring +
Constant. The researcher recommended that bank should closely watch the reminder strategies,
educate and sensitize customers and other users of the financial , recruiting recovery officers, adopting
group recovery policy, facilitating the recovery process and the enforcement, create a department for
follow up action and carrying out standard loan appraisal, formulate a separate legal department and
recovery department at each branch, involve LCs chair persons, use guarantors all these will help
increase Loan Portfolio Performance. | en_US |
