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Title: The effects of credit policy on the performance of commercial banks:
Other Titles: a case study of chase bank (CBK), Nakuru Branch Kenya
Authors: Kimeu, Mathias Musyoka
Keywords: Credit policy
Commercial banks
Issue Date: Sep-2012
Publisher: Kampala International University, College of Economics and Management
Abstract: This research aimed at the effects of credit policy on the performance of commercial Banks in Kenya. it was guided by the following objectives; to establish the relationship between credit policy and performance in commercial banks; to examine the roles of credit policy towards performance of Chase Bank; to determine how Chase Bank has reviewed their credit policy in regard to performance and to analyse the impacts of credit policies on the performance of Chase Bank. Having employed both qualitative and quantitative methods of data collection, where 100 respondents from Nakuru County participated, it was found out that the good performance of Chase bank was mainly contributed by the credit control measures as a result of well established credit policy screening mechanism in place before credit is extended to clients. It's evident from this study that indigenous commercial banks in Kenya use all the elements of credit policy management process, but are not comprehensively using the aspects of the various elements of the process in the management of their credit function. there is a significant and positive relationship between the elements of credit policy management and the performance of Chase bank thus these findings reveal that the credit policy management in the bank has a strong impact of the quality of the bank's loan portfolio and thus the performance of the bank. in light of the conclusion drawn above and the findings obtained during the study, the researcher ecommended that Chase bank should work in conjunction with other banks to come up with a centralized customer data for easy access on details concerning a customer's credit worthiness, financial institutions should always have qualified and experienced credit team who can tell a suitable candidate before any loan is given. Also financial institutions should always keep records on an maturity and terms and conditions given to a client before loan is disbursed should be followed by financial institution to avoid defaulters.
Description: . A research dissertation submitted to the college of economics and applied sciences in partial fulfillment of one of the requirements for the a ward of Bachelor’s Degree in Business administration of Kampala International University
Appears in Collections:Bachelor of Business Administration (BBA)

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