Publication Date: 2020/12/19
Abstract: This research analyzed Credit Management Policy and Financial Performance in Financial Institutions in Uganda: A Case of Selected Centenary Bank Branches in Rwenzori Region. Three research objectives guided the study; to find out the credit management strategies. To examine the financial performance; and to establish the relationship between credit management and financial performance. The study adopted a cross sectional research study design with triangulation of both qualitative and quanttative research techniques/methodologies. The analysis of data was done with the help of statistical analysis programme SPSS (Statistical Package for Social Scientists), and a Pearson method was used to test the relationship between the two variables (credit management policy and financial performance). The study found that there is a positive relationship between Credit evaluation and financial performance (Pearson coefficient ‘r’ of 0.450 and the significant Value 0.004; a positive relationship between Credit terms and bank performance (Pearson coefficient correlation (r=0.533) and significant value =0.000) and a positive relationship between credit monitoring and financial performance ( Pearson coefficient of correlation r =0.411 and the significant Value 0.008). The study concluded there is a positive relationship between Credit monitoring and bank performance at Centenary Bank Branches in Rwenzori Region of Uganda. The study recommended that CBL should extend the payback period from one year to at least five years to increase the percentage of payback. CBL should look into scrutinizing the customers who borrow loans thoroughly before loan is issued and at the same time choose credible and trained officers to carry out monitoring and supervision of loans granted.
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PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT20NOV391.pdf
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