Credit risk management and financial performance of Commercial Banks in Uganda: a case study of Barclays Bank, Kampala Road Branch

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Date
2015-04
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Publisher
Kampala International University: College of Economics and Management
Abstract
The study set out to investigate the relationship between credit risk management and financial performance of commercial banks. Credit risk management is very important to Commercial Bank's improvement of their financial performance, thus this research is intended to address the extent to which credit risk management can led to increased financial performance of Commercial Banks. On the other hand, the study was intended to discuss the other factors that may hinder financial performance of the Commercial Banks apart from credit risk control. The study employed a survey research design and used self administered questionnaires and face to face interviews. A sampling design of 30 respondents was selected which composed of 4 management executives, 6 loan officers and 10 employees from Barclays Bank Kampala Road Branch. Findings from the study show that financial performance of commercial banks has improved due to the good credit risk management techniques and process like training of stuff on credit risk reduction. Findings also show that financial performance has been hindered by crashing ATMs, long lines made by the customers each day and switching systems. Findings also show that credit risk and financial performance of Commercial Banks are positive hence a lot of awareness and training of employees has been put in place at the bank so curb the credit risk. The researcher thus recommends that; Barclays Bank should continue with the credit risk management short courses and seminars and should penetrate into the unleashed financial community so as to boost the financial performance.
Description
A dissertation submitted to College of Economics and Management in partial fulfillment of the requirements for the Award of Bachelor's Degree in Business Administration of Kampala International University
Keywords
Credit risk management, Financial performance, Commercial Banks, Barclays Bank
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