Masters Degree Dissertations

Permanent URI for this collectionhttp://localhost:4000/handle/20.500.12504/136

Browse

Browsing Masters Degree Dissertations by Subject "Banks and banking"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Credit management practices and loan performance in commercial banks in Uganda : a case of Post bank Uganda
    (Kyambogo University (Unpublished work), 2024-10) Kayima, Boaz
    This study examined the effect of credit management practices on loan performance of commercial banks a case of Post Bank Uganda. The study was anchored on three objectives which included; examining the effect of loan appraisal process on loan performance, the effect loan collection procedure on loan performance and the effect of credit risk control procedure on loan performance. The study considered a cross-sectional survey research design considering both quantitative and qualitative research approach. The study targeted 140 participants but 134 participants where 130 used questionnaires and 04 used interview managed to respond hence showing the response rate of 95.7%. The study findings revealed that there was a weak but positive and significant relationship between loan appraisal processes and loan performance at (r = .227**, p<.01) and Loan Application Appraisal was a positive significant predictor of loan performance by 4.4% (0.044, p<.05) with B-value (.231**). There was a positive and significant relationship between loan collection procedure and loan performance at (r =.377**, p<0.01) and Loan Collection Procedure positively and significantly predicted the loan performance by 13.5% (0.135, p<.05) with B-value (.282**). There was a positive and significant relationship between credit risk control policy and loan performance at (r = .419**, p<.01) and Credit Risk Control Procedure, it was the highest significant predictor of loan performance of 16.7% (0.167, p<.05) with B-value (.392**). Furthermore, credit management practices with its constructs (loan appraisal process, loan collection procedure and credit risk control procedure) combined influenced the loan performance at Post Bank Uganda by 28.5% (0.285, p<.05) with B-value (.307*). Based on the study’s findings, it is recommended that financial institutions and regulatory bodies consider implementing robust measures that necessitate the submission and evaluation of business plans as a prerequisite for loan approval, it is imperative that the bank institutes more robust and clearly defined repayment conditions for borrowers who default, including stricter penalties and timelines for resolution. Additionally, establishing a regular schedule of loan recovery meetings with clients is essential for fostering effective communication and cooperation and financial institutions implement policies allowing for reasonable extension periods in cases of genuine client hardship, thus providing borrowers with a lifeline to recover from temporary financial setbacks