Credit policy and the performance of commercial banks in Kenya: a case study of Equity Bank, Kisumu Branch

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Kampala International University; College of Economics and management
The study aimed at assessing the effects of credit policies on the performance of commercial banks in Equity Bank of Kenya. And to propose measures to improve credit policy in Equity Banks. For the effectiveness of the research, the researcher used a research design of a cases study of Equity Bank Kisumu Branch Kenya. Data collection and analysis were used to arrange the information in such a way that enabled the researcher to come- 1:1p with the• reliable recommendations and conclusion. Different methodologies were employed which were research instruments and analysis of data where the researcher used pie charts and presentation done in bar graphs. The researcher found out that the good performance of Equity 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 Equity Bank thus these findings reveal that the credit policy management in the bank has a strong impact of the quality of the bank's portfolio and thus the performance of the bank.
A research dissertation submitted to the school of Business and Management in partial fulfillment of the requirements for the Award of a Bachelor’s Degree in Business Administration of Kampala International University
Credit policy, Performance of commercial banks