Credit risk management and loan performance on micro finance institutions; a case study of pride micro finance kabalagala branch :
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Date
2019-08
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The concept microfiche in Uganda is one of the most developed in the Sub-Saharan Africa.
However, given the importance of credit risk in micromanage functioning, the efficiency of
Micro finance Risk Management which includes techniques, methods, processes, procedures,
activities and incentives is expected to significantly influence its loan performance. This study
therefore sought to determine the relationship between credit risk management and loan
performance in interoffice institutions (MFIs,) in Uganda; a case of Pride Micro-finance,
Kabalagala Branch. A descriptive research design was adopted. The target population comprised
twelve MFIs and a sample size of 30 respondents obtained by purposely sampling the
respondents from staff members of pride micromanage, Kabalagala branch. Data collection was
clone using questionnaires and analyzed using SPSS where descriptive and inferential statistics
were conducted. The study found a positive and statistically significant relationship between credit
risk environment, credit appraisal process, credit administration, measurement and monitoring,
internal control over credit risk and loan performai~ce in the micro finance bank’s the senior
management in the MFIs should develop policies and procedures, establish overall credit limits,
have a system for monitoring the condition of individual credits and an independent internal
control system for conducting ongoing assessment of the micromanage ‘s credit risk management
process,
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of bachelors’ degree of business administration (accounting and finance) of Kampala international university.
Keywords
Credit risk management, loan performance, micro finance institutions