effect of credit policy on the performance of commercial banks; a case study of Equity Bank, Kakamega Branch, Kenya

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Kampala International University, Faculty of Business 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 Kakamega branch Kenya. Data collectioh · 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
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
credit, commercial banks, policy