effect of credit policy on the performance of commercial banks; a case study of Equity Bank, Kakamega Branch, Kenya
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Date
2011-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, Faculty of Business and management
Abstract
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 Kakamega branch Kenya. Data collectioh ยท and
analysis were used to arrange the information in such a way that erlabled the
researcher to come up 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
Description
A Research Dissertation Submitted to the Faculty of Business and management in Partial Fulfillment of the Requirements of the Award of the Degree of Bachelor of Business Administration of Kampala International University
Keywords
credit, commercial banks, policy