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"

Now showing 1 - 4 of 4
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    Computerized accounting systems and quality of financial reports of selected commercial banks in Hargeisa, Somaliland
    (Kampala International University, College of Economics and Management, 2018-06) Abdirahman, Awil Hussein
    This study aimed at investigating the effects of computerized accounting systems on financial reports of selected commercial banks in Hargeisa Somaliland. It was guided by three specific objectives, that included (i) To establish the effect of Accounting data processing on the quality of financial reports in Somaliland, (ii) To establish the effect of Accounting data Storage on the quality of financial reports in Somaliland, and (iii) To establish the effect of Accounting data retrieval on the quality of financial reports in Somaliland. This research employed descriptive research design to describe the variables and the main instrument of data collection was the questionnaires. Quantitative data was analyzed using both descriptive and inferential analysis. Data collected through the open-ended questions. The sample for the study consisted of 63 respondents from selected commercial banks in Hargeisa Somaliland; selected through purposive sampling technique. Data collected was analyzed using descriptive statistics and regression analysis in particular using the Statistical Package for Social Sciences (SPSS) software. To ensure validity of the instruments Content Validity Index (CVI) was used which should not be less than 0.7. To ensure reliability, the researcher conducted a pilot test and the Cronbach’s Alpha reliability coefficient which ranges in value from 0 to 1 was computed using SPSS. The study found out that taking all other independent variables at zero, a unit increase in accounting data processing lead to .465 increase in quality of financial reports whereas a unit increase in Accounting data Storage leads to .310 increase in quality of financial reports and a unit increase in Accounting data retrieval leads to .472 increase in quality of financial reports of selected commercial banks. This infers that accounting data retrieval contributes most to quality of financial reports of selected commercial banks followed by Accounting data processing then accounting data storage. The study concluded that computerized accounting systems has significant effect on the quality of financial reports of selected commercial banks in Hargeisa Somaliland. The study recommends that in order to ensure that the selected commercial banks have quality financial reports; they should invest on computerized accounting systems to improve the speed, timeliness, accuracy and relevance of the financial reports of their organizations. The study contributed to new knowledge in the following ways; the holistic analysis of this study added to existing research by identifying that computerized accounting systems such as accounting data processing, accounting data storage and data retrieval storage significantly affect the quality of financial reports. To holistically analyze the significant effect of these systems, which has not been done before. The study confirmed results of existing studies that also emphasized the effect of computerized accounting systems on quality of financial reports. However, the study also provides empirical evidence that computerized accounting systems factoring in its speed, timeliness, accuracy, Data Security and the possibility of producing quality data affects the quality of financial reports of the selected commercial banks in Hargeisa Somaliland. Moreover, the study contributed that the measures of quality of financial reports are relevancy, reliability and understandability that were not emphasized in existing computerized accounting and quality of financial reports literature.
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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) Alain Romaric, Rukundo
    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 from 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 successful 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.
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    Credit risk management and loan performance in commercial bank in Mogadishu, Somalia
    (Kampala International University, College of Economics and Management, 2019-11) Omar, Abdifatah Mohamed
    The purpose of the study was to establish the effect of risk management on Loan performance in commercial banks in Mogadishu Somalia. The objectives were to assess the effect of risk identification on Loan performance of commercial banks in Mogadishu Somalia, to determine the effect of risk assessment on Loan performance of commercial banks and to assess how risk monitoring affect Loan performance commercial banks in Mogadishu Somalia. The study was conducted in selected banks of Mogadishu Somalia, the data was collected from 131 respondents using closed ended questionnaires. The data collected reveal that risk identification had a significant effect on loan performance (Sig=0.000) while risk assessment also had significant effect on loan performance (0.008) and risk monitoring had an insignificant effect on loan performance (0.087). The study findings imply that credit risk management has an effect that is paramount on loan performance in Mogadishu Somalia. The study results regarding the first objective, the study conclude that risk analysis is fundamental in enhancing Loan performance. The study conclude that effective risk identification is necessary for Loan performance indicating that utmost work performance is fundamental for loan portfolio response. The study on the second research objective concludes that risk assessment in the banks in Mogadishu Somalia had a significant effect on Loan performance. The study concludes further that managing the state of risks concerning loans can generate the Reponses in payment for loans. The study finally on the third objective conclude that risk monitoring though occurred in the commercial banks of Mogadishu Somalia did not generate high Loan performance. The result indicates that risk monitoring didn’t lead to resonate loans recovery. The study recommend that there is need for strong cost reduction by management through credit risk analysis so as to save on the finances lost through operations for recovery of the none responding or performing Loans. There is need for the banks to conduct analysis in clear form and develop the mode for tracking risks before their actual occurrence to curb insurgencies. The management needs to institute management teams for enhancing direct operations for the organizational establishments. Thirdly, on there is need for detailed information on integrated risk management at their company and weigh these risks against those of new investments.
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    Integrated financial management system and financial reporting in selected commercial banks in Bujumbura, Burundi
    (Kampala International University, College of Economics and Management, 2019-09) Leila, Kaneza
    The quality and standard of financial reporting among Burundian commercial banks do not match the international standard of reporting in the banking sector of more developed countries. The purpose of this study was to determine the effect of integrated financial management system on financial reporting in selected commercial banks in Bujumbura, Burundi. This study was guided by the following objectives:i) to determine the effect of cash management on the financial reporting of selected commercial banks in Bujumbura, Burundi; ii) to determine the effect of budgeting on the financial reporting of selected commercial banks in Bujumbura, Burundi; and iii) to determine the effect of accounting system on the financial reporting of selected commercial banks in Bujumbura, Burundi. The study adopted a cross-sectional survey design. The target population of 153 included the technical employees of the selected commercial banks in Bujumbura. The sample size of 111 was arrived at using Slovene’s formula. Questionnaire and document review were the main research instruments. Data was analyzed using frequency and percentage distribution tables, mean and standard deviations, and linear regression analysis. In order to test validity, the study used face validity, content validity, and normality test. In order to test reliability, the study used test-retest and internal consistency methods. The study revealed that cash management significantly affect the financial reporting of commercial banks (Adjusted R2=0.562, p=0.000). Furthermore, the study revealed that budgeting significantly affect the financial reporting of commercial banks Adjusted R2=0.439, p=0.000). In addition, the study found that accounting system significantly affect the financial reporting of commercial banks (Adjusted R2=0.612, p=0.000). The study concluded that IFMS influences financial reporting. The study recommended that the management of the banking industry should involve all the stakeholders in the development of cash management framework that is used in the planning, implementation, auditing, supervision, monitoring and maintenance of the IFMS to streamline all roles and responsibilities of all the users of the system so that no cash is mismanaged. Furthermore, the study recommended that the management of the banking industry should promote efficient and clear budgeting by incorporating it with the IFMS. In addition, the study recommended that commercial banks should adhere to strict IFMS guidelines such as payment terms, credit limit, and automatic voucher number. Similarly, the study recommended that the management of the banking industry should ensure that IFMS easily adapts to the changes in cash management, budgeting and accounting system practices without complete overhaul of the system so as to ensure efficient and timely financial reporting. The current study added to the body of knowledge that IFMS in terms of cash management, budgeting and accounting system are synonymous in ensuring clear and quality financial report.