Credit management and the organisation performance of equity commercial bank in selected districts in South Nyanza Kenya
Loading...
Date
2011-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University. College of Economics and Management
Abstract
This study on credit management and performance of Equity bank
was conducted with the main purpose of establishing the relationship
between credit management and performance. The researcher carried out
this study while being guided by four research objectives that were oriented
towards determining the respondents profile in terms of age, gender, rank,
income level, educational qualification, type of employment and years of
service;to determine the level of credit management in terms of character,
capacity, condition, capital and collateral management; to determine the
level of bank’s performance in terms of credit issuance, market share,
profitability, customer satisfaction, employee satisfaction and shareholders’
wealth and to establish the relationship between credit management and
performance of Equity bank.
The study employed both descriptive correlation research design. The
population of this study was characterized by employees of Equity bank
chosen basing on the ranks they belong and length of service. Stratified
random and purposive sampling techniques were also used to obtain 102
respondents that acted as a sample size.
The data collection was analyzed using SPSS for means to determine
level of independent and dependent variables. The research findings
revealed that credit management using the Pearson’s Linear correlation
Coefficient, the correlation between the two variables was determined. The
Study established that there is a moderate level of credit management by
(Overall mean=2.76) and moderate level of performance in Equity bank
(Overall mean=3.22).Regression analysis, proved it that all the five aspects
of credit management included in the regression model contributed over
96% towards performance of Equity bank.(Adjusted R2 0.960).
It is recommended that equity bank adhere to strict credit
management to ensure its performance, and continuously improve on their
market share, adhere to Central Bank regulations which are beneficial in
credit management policies. Above all Equity bank should venture in rural
areas to maximize profits.
Description
A Thesis Presented to School of Postgraduate Studies and Research Kampala International University Kampala Uganda In Partial Fulfillment of the Requirement for the Degree Masters in Business and Management (Finance and Accounting Option)
Keywords
Credit management, Organisation performance