Credit Policy and Performance of Commercial Banks in Kenya. A Case Study of Equity Bank, Nakuru Branch, Kenya.

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Kampala International University, College of Economics and Management .
The research topic was chosen due to the fact that there has been an intense global competition in the finance and banking sectors whereby some of the institutions in the industry do not believe that the various credit policy they provide and the way they provide them and the way in which these credit policies are finally delivered can affect their performance either positively or negatively. The research topic was therefore to establish the effect of credit policy on the performance of commercial banks. Specific objectives of the study were to; determine the relationship between credit policy and performance of commercial bank, establish the effect of credit policy on performance of commercial bank and identify the various credit policy by the banking institutions. The research was particularly carried out at Equity Bank, Nakuru Branch, Kenya. The data was collected using both quantitative and qualitative methods. Research design included; study population, sample size technique while the research instruments used were; Questionnaires and interviews together with other instruments such as observations. The data obtained was interpreted, analysed and presented in tabular forms showing the percentage and frequencies and also illustrated in diagrams on the basis of the analysed information. These provided a clear meaning and therefore easy understanding of the data presented. Finally summaries were drawn recommendations and conclusions were made from the interpreted, analysed and presented information. It was recommended that the management of commercial bank should make sure that they explain to their customers the credit policy available and how they operate.
A research dissertation submitted to the School of Business and Management in Partial Fulfillment of the Requirements for the Award of Bachelors Degree in Business Administration of Kampala International University.
Commercial Banks, Credit Policy, Performance, Equity Bank, Kenya