| dc.description.abstract | The research was carried on credit policy and financial performance of financial institutions, a case study of Opportunity Bank. The study was based on four objectives that is; to assess the relationship between credit rating procedure of loan applicants on the financial performance of
Opportunity Bank, to determine the effect of interest rates on financial performance of Opportunity Bank, to examine the relationship between the loan collection procedures and the financial performance of Opportunity Bank.
The study used a case study research design and both primary and secondary data were utilized.
Primary data was obtained through interviews and by use of self-administered questionnaires.
Secondary data was got from past dissertations, business manuals, company reports and journals.
The study revealed that there is a positive significant relationship between Opportunity bank's credit rating procedures and financial performance of the bank. The study found out that there is a positive relationship between loan collection procedures and the performance of the bank. The study further revealed that there is a positive relationship between loan interest, loan portfolio growth and performance of financial institutions. It was concluded that there is a positive relationship between credit policy and financial performance of Opportunity bank (U) limited.
The researcher recommends that the bank should reduce on its debt collection periods, carry out intensive loan applicant assessment, strengthen the bank's loan recovery/collection effort and procedures as well as re-designing and further strengthening its credit policies.
The key words used were loan collection procedure, credit rating procedures, interest rates as well as financial performance. | en_US |
