A thesis submitted to the College of Higher Degrees and Research of Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Award of a Degree of Master of Business Administration (Banking and Financial)
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Date
2014-06
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Kampala International University, College of Economics and management
Abstract
'The principle aim of this study was to evaluate credit management policy and loan recovery in the selected commercial banks in Nimule Town. In achieving this the study determined the extent of credit management policy and the extent of loan recovery in selected commercial banks in Nimule Town, lastly the study established the relationship between credit management policy and loan recoveryiIn pursuance of the above objectives, the study was based on information gathered from 176 respondents consisting of branch managers, credit administrator, loan officers of the selected commercial banks in Nimule Town. Descriptive correlation design was used, validity and reliability of research instruments were determined. Data was analyzed by the use of SPSS in which mean, correlation matrix and regression analysis were employed. The researcher concluded that there is a low degree of Credit terms in selected commercial banks in Nimule Town as show by (mean 2.34) and if this is maintained, it would constitute to the low satisfaction of the individual who want to take up loans. The findings of the study was based in mean and it showed that the extent of credit management policy and its effectiveness in selected commercial banks in Nimule Town was moderately effective. This was affirmed by the overall mean average of (2.56) nearly to low/ fair by (0.6). The extent of loan recovery in selected commercial banks in Nimule Town is generally low. This was judged by the overall mean average ofb 2.49. The findings indicated a positive significant relationship between the extent of credit management policy and level of loan recovery at r= value of 0.3657, Adjusted R2 =0.120 and f-value of 22.290, and at a significant value of sig. =0.000. Considering these findings the null hypothesis was rejected and a conclusion was drawn that there is a significant relationship between the extent of credit management and loan recovery in the selected commercial banks in Nimule Town. The researcher recommended that redesigning credit management and its proper implementation could help in reinforcing and uplift the level of loan recovery in the selected commercial banks in Nimule Town. The banks needs proper monitoring and follow ups of loans disbursed i.e. regular outreach program needs to be beefed up.
Description
A thesis submitted to the College of Higher Degrees and Research of Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Award of a Degree of Master of Business Administration (Banking and Financial)
Keywords
Credit management policy, Loan recovery, Commercial Banks, Nimule Town