Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/14203
Title: Credit risk management and financial performance of commercial banks in Kampala, Uganda
Authors: Aribo, Clementine
Keywords: Credit risk management
Financial performance
Commercial banks
Uganda
Issue Date: Apr-2022
Publisher: Kampala International University, College of Economics and Management
Abstract: The study sought to examine the effect of credit risk management on financial performance of Commercial banks in Kampala, Uganda. The study objectives are to examine the effect of Credit Risk Identification on financial performance of Commercial banks, to establish the effect of Credit Risk Control on financial performance of Commercial banks and to examine the effect of Credit Risk analysis on financial performance of Commercial banks. The study employed descriptive survey research design with a sample of 110 respondents. Regression analysis was employed to achieve the study objectives. The study findings revealed that Credit Risk Control has a very strong positive significant effect on financial performance of commercial banks in Kampala (Adjusted R2=0.897, p=0.000). The study on effect of credit risk analysis findings revealed that there is a significant effect between credit risk analysis and financial performance (Adjusted R2=0.903, p=0.000). The third objective further revealed that credit risk control has a significant positive effect on financial performance of commercial banks in Kampala (β=0.951, p=0.000 < 0.005). Therefore, all the three hypotheses were rejected. The study concluded that credit risk identification, credit risk analysis and credit risk control all have positive significant effect on financial performance of commercial banks in Kampala. The study recommends that commercial banks should develop clear risk mapping schemes to enable them to identify both primary and secondary risks that may occur. Also recommends that the management of commercial banks should not direct most of their credit to capital investments because these tend to affect the liquidity of the bank. Still Credit limits should be adhered to and not to keep inviting all credit customers to go for top-up loans. The control should be in place to ensure the bank runs smoothly while making sufficient profits.
Description: A dissertation submitted to the college of economics and management in partial fulfillment of the requirements for the award of Master’s degree in business administration (Finance and Banking) of Kampala International University
URI: http://hdl.handle.net/20.500.12306/14203
Appears in Collections:Master of Business Administration - Main and Ishaka Campus

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