Master of Accounting and Finance

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https://testir.kiu.ac.ug/handle/20.500.12306/26

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Browsing Master of Accounting and Finance by Subject "Commercial Banks"

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    Corporate Governance and Financial Performance of Commercial Banks in Tanzania A Case of CRDB Bank - Head Office Dar es Salaam
    (Kampala International University, 2022-10)
    The relevance of corporate governance in banks has been recognized as a high ethical value standard guaranteeing economic health on account, that it is a structure by which corporations are directed and controlled to specify distribution of rights and responsibilities among the board, managers, shareholders and stakeholders to establish rules and procedures for decision making in a transparent manner on corporate affairs by which objectives are set and attained in monitoring performance. While the existing literature on the subject has received major concern due to ineffective corporate governance resulting from excessive misuse of power, fraud and damage that is prevalent today, this study aimed at assessing the financial benefit of banks with effective corporate governance by analyzing the relationship between corporate governance and financial performance of commercial banks in Tanzania, using the case of CRDB Bank, distinctly accredited for its substantial financial performance. The independent variable (corporate governance) was measured on five indices (auditing, accountability, transparency, risk management and board composition structure), whereas the dependent variable (financial performance), was (return on assets and return on equity). A case of CRDB Bank-Head Office was used as the research design where quantitative research approaches were applied on a sample of 90 respondents from the bank’s Head office. Descriptive statistics, Pearson linear correlation coefficient (PLCC) and linear regression analysis were used in data analysis to test the null and alternative hypotheses of the study. Findings revealed that there was a strong and active corporate governance practice in CRDB Bank. Furthermore, there was a strong positive significant effect of auditing, accountability, board composition structure and risk management on financial performance whereas, transparency had a strong but negative linear effect on financial performance, implying that excessive transparency may not consistently increase financial performance as it may interfere with the safety of bank confidentiality (privacy) causing information risk attacks. The author concluded by recommending that the corporate governance analyzed in the study be utilized by the government, financial sectors, auditors, financial leaders, regulators, theorists, enforcement agencies, decision and policy-makers and other stakeholders of various firms to formulate superior corporate governance policies that ethically operate with local and international standards to minimize corporate collapse, non-compliance and intervention from Central bank to curtail liquidation, create economic growth, robust financial base, social responsibility, integrity, good reputation and long-term value. The study also suggests that further research beyond the finance industry be ventured into since corporate governance varies from industry to industry.
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    Credit Management and Loan Performance in Selected Commercial Banks In Bujumbura, Burundi.
    (Kampala International University ,College of Economics and Management., 2018-12) Rukundo, Alain Romaric
    This study was aimed at determining the effect credit management on loan performance. The study was based on four specific objectives; to assess the effect of credit standards on loan performance in commercial banks, to determine the effect of implementation of credit policy on loan performance in commercial banks, to analyze how credit terms affect loan performance in commercial banks and to establish the effect of collection policies on loan performance in commercial banks in Burundi. A review of existing literature revealed that very few studies have been done on factors affecting credit management as many of the studies concentrated largely on non-financial loans and credit allocation yet it is through improved credit management that banks’ loan portfolios can enlarge and banks would meet their ultimate goal of stimulating growth and performance in the economy. Despite many researches it is quite clear that very little research studies has been done on factors affecting credit management as many of the researches concentrates largely on nonfinancial loans and credit allocation yet it is through improved credit management that banks would be able to expand their loan portfolios. The study aims to fill that knowledge gap. The study adopted a descriptive survey design, with the study population comprised of 58 employees of 3 selected commercial banks. Data was collected using questionnaires and was analyzed using descriptive and regression analysis to determine the effect of credit management on loan performance. The findings of the study revealed that the various components of credit management, that is credit standards (average mean 4.73 and standard deviation 0.68), credit policy (average mean 4.71 and standard deviation 0.63). credit terms (average mean 4.57 and standard deviation 0.57) and collection policy (average mean 4.63 and standard deviation 0.61), have a positive and significant effect on loan performance in commercial banks in Bujumbura. Burundi. The study concluded that having objective and appropriate parameters for credit standard, enabling banks to adequately assess the credit records, and clear guidelines in the processing and issuance of loans and monitoring their repayment schedules has a direct bearing on the levels of default and repayment. It was also concluded that the policy on loan repayment collections is another key determinant of loan performance, where the rate of asset recovery and transfer of loans is directed related to the level of losses fi’orn loan default. The study recommended that Commercial banks should consider having in place effective credit standards, credit policy, credit terms and collection policies or procedures as mechanisms to guide their business, since the effectiveness of credit management is important to the successfLll management of banking institutions; that Commercial banks should operate their credit businesses based strictly on established lending guidelines that clearly outline the business growth priorities of the senior management, as well as the conditions to satisfy in order to qualify for loan approval; and that there should be prior customer evaluation before loans are granted, and a continuous process of assessment before and during the course of loan repayment. This study’s contribution to knowledge is its ability to add to the body of existing knowledge on financial and credit management discipline and bridging gaps in credit management research as a whole, by informing policy makers and managers of the best practices in appraising their credit policies and to review their operations critically for more result oriented approaches in the dealing with credit facilities.