Credit Management and Bank Performance of Selected Commercial Banks in Kigali- Rwanda
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Date
2011-09
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management.
Abstract
This study was undertaken with the primary purpose of determining if there is a
relationship between credit management and bank performance in selected commercial
banks-Kigali Rwanda. To accomplish this task, it was guided by the following research
questions; what is the profile of the respondents in terms of age, sex, level of
education, position in the bank and number of years in present position? What is the
extent of credit management in terms of credit appraisal and approval procedures, debt
collection strategy and credit monitoring procedures? What is the level of bank
performance in selected commercial banks in Kigali-Rwanda? Is there a significant
relationship between credit management and bank performance in selected commercial
banks in Kigali -Rwanda?
The research was carried out using closed ended questionnaires based up on
purposive samples of the banks in the target population (160). The data was analyzed
using SPSS software package where frequencies, percentages, means and standard
deviation were used.
The findings showed that the extent of credit management was poor with the
overall total of 2.40; the level of bank performance was also rated at 2.2 indicating a
low performance. The findings reveal a significant relationship between credit
management and bank performance. The study further revealed that there were some
weaknesses in credit implementation which resulted into low performance in selected
banks. However the banks were advised to adopt an aggressive credit management
strategy in place to improve on the performance.
Description
A Thesis Presented to The School of Postgraduate Studies and Research Kampala International University Kampala- Uganda In Partial Fulfillment of the Requirements for the Degree Masters in Business Administration (Finance and Banking)
Keywords
Bank Performance, Credit Management, Commercial Banks, Kigali- Rwanda