Credit risk management and financial performance of BRAC micro finance Kibuli, Makindye division Kampala Uganda:
Loading...
Date
2019-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management.
Abstract
The study concerning the findings on the effect of credit risk management on the financial
performance of Brac Micro finance. The study objectives were to investigate the relationship
credit risk identification on the financial performance, to establish the relationship between
credit risk monitoring and assess the relationship credit risk analysis on the financial
performance of equity bank Uganda. The study was conducted from 30 respondents who were
the employees ofBrac Microfinance. The data was collected using closed ended questionnaires
were data, the research was entirely a descriptive research design based on quantitative
research. The study findings reveal that credit risk management had a significant contribution to
financial performance. The study conclude that credit risk identification was low though with a
significant effect on financial performance, the study conclude that risk identification need
enhancement through improving forecasting improvements. The study on the second objective
the study conclude that the credit risk analysis contribute significantly to financial performance
of the banks, the study conclude that risk analysis has to be improved in the mechanisms to
enhance financial performance and operations. On the third objective the study conclude that
credit risk monitoring can generate financial performance of the bank, whereas the financial
performance of the bank seemed relevant and significant, credit risk management is low that call
for an enhancement of the staff and the instruments used in improving credit risk management to
generate financial performance. The study recommends that bank’s top management and board
ofdirectors must base their investment decisions primarily on risk management. They must use
detailed information on integrated risk management at their company and weigh these risks
against those of new investments. There is need for improving the financial performance of the
commercial bank in the extent that customer base can be improved There is need for strong cost
reduction by management through credit risk analysis so as to save on the finances lost through
operations that are not effectively guided in work to improve financial soundness of the
commercial bank.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of degree of bachelor of business administration accounting and finance Kampala international university.
Keywords
Credit risk management, financial performance, micro finance