CREDIT RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A CASE STUDY OF BARCLAYS BANK WANDEGEYA BRANCH


For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

TABLE OF CONTENTS

DECLARATION ........................................................................................................................ .i

APPROVAL ................................................................................................................................ ii

DEDICATION ............................................................................................................................ iii

ACKNOWLEDGEMENT .......................................................................................................... iv

TABLE OF CONTENTS ............................................................................................................ v

ABSTRACT ............................................................................................................................... ix

CHAPTER ONE ........................................................................................................................ I

INTRODUCTION ..................................................................................................................... I

1.0 Introduction .................................................................................................................... I

1.1 Background of the study ........................................................................................................ I

I .I .I Historical Background ........................................................................................................ I

1.1.2 Theoretical Background ...................................................................................................... 2

1.1.3 Conceptual Background ...................................................................................................... 3

1.1.4 Contextual Background ...................................................................................................... 3

1.2 Statement of the problem ..................................................................................................... 4

1.3 Purpose of the study ............................................................................................................... 4

1.4 Objectives of the study .......................................................................................................... 4

1.5 Research questions ................................................................................................................. 4

1.6 Hypothesis ............................................................................................................................. 5

I. 7 Scope of the study ................................................................................................................ 5

1.7 .I Geographical scope ............................................................................................................. 5

1.7.2 Time scope .......................................................................................................................... 5

I. 7.3 Content scope ...................................................................................................................... 5

1.8 Significance of the study ....................................................................................................... 5

1.9 Conceptual framework of the study ....................................................................................... 6

CHAPTER TWO ....................................................................................................................... 8

LITERATURE REVIEW ......................................................................................................... 8

2.0 Introduction ............................................................................................................................ 8

2.1 The concept ofrisk in commercial banks .............................................................................. 8

2.1.1 Credit Risk Management in Commercial Banks ................................................................ 8

V

2.1.2 Credit Risk management process ........................................................................................ 9

2.2 Financial performance ......................................................................................................... 11

2.3 Credit Policy in Commercial Banks .................................................................................... 12

2.3.1. Identification and prioritization of Market Targets ......................................................... 13

2.3.2 Credit Initiation/ Analysis Process ................................................................................... 13

2.3 .3 Credit Approval ................................................................................................................ 15

2.3.4 Credit Documentation and Disbursement. ........................................................................ 15

2.4 Credit risk measurement, monitoring and control ............................................................... I 6

CHAPTER THREE ................................................................................................................. 17

METHODOLOGY .................................................................................................................. 17

3.0. Introduction ......................................................................................................................... 17

3 .1. Research design .................................................................................................................. 17

3.2. Target population ................................................................................................................ 17

3.3 Sample size .......................................................................................................................... 17

3.4 Sampling procedure ............................................................................................................. 18

3.5 Research instruments ........................................................................................................... 18

3.6 Validity and reliability of instrument ..................................................................... 18

3.6.1 Validity ......................................................................................................................... 18

3.6.2 Reliability ......................................................................................................................... 19

3.7 Data collection ..................................................................................................................... 19

3.7.1 Before ............................................................................................................................... 19

3.7.2 During ............................................................................................................................... 19

3.7.3 After .................................................................................................................................. 19

3.8 Data Analysis ....................................................................................................................... 20

3.9 Ethical considerations .......................................................................................................... 20

3.10 Limitations ......................................................................................................................... 20

CHAPTER FOUR ................................................................................................................... 21

PRESENTATIONS, INTEPRETATIONS AND DISCUSSIONS ...................................... 21

4.1 Introduction .......................................................................................................................... 21

4.2 Demographic characteristics of respondents ....................................................................... 21

4.2.1 The position held in the organization ............................................................................... 21

4.2.2 Gender of respondents ...................................................................................................... 22

VI

4.2.3 Level of Education ............................................................................................................ 22

4.2.4 Age of respondents ...................................................................................................... 23

4.2.5Working experience ........................................................................................................... 23

4.3 To establish the extent of integrating credit risk management processes into the credit

policies of the bank. ................................................................................................................... 24

4.3.1 Nature of loans offered to clients ...................................................................................... 24

4.3.2 Whether clients pay back the borrowed money in time ................................................... 24

4.3.3 Whether the delay in payment is due to inactive credit risk management policies .......... 25

4.3 .4 Whether the organization sets, follows, and implements credit policies and terms ......... 25

4.3.5 Whether the organization offer training to all employees on the terms and policies set by

the organization ......................................................................................................................... 26

4.4 To determine the relationship between credit risk management and financial performance of

commercial banks ...................................................................................................................... 26

4.4.1 There has been an increase in financial performance of Barclays bank over the past 5

years ............................................................................................................................................ 26

4.4.3 Credit risk management policies have a positive effect on financial performance of an

organization ............................................................................................................................... 27

CHAPTER FIVE ..................................................................................................................... 29

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .............. 29

5.1 Introduction .......................................................................................................................... 29

5.2 Summary of findings ........................................................................................................... 29

5.2.1 Summary of findings on the background characteristics of respondents ......................... 29

5.2.2 Summary of findings on extent of integrating credit risk management processes into the

credit policies of the bank .......................................................................................................... 30

5.3 CONCLUSIONS ................................................................................................................ 30

5.3.1 Conclusions of findings on extent of integrating credit risk management processes into the

credit policies of the bank .......................................................................................................... 30

5.3.2 Conclusions of findings factors on affecting financial performance of commercial

banks ...................................................................................................................................... 31

5.3.3 Conclusions of findings on the relationship between Credits risk management financial

performance commercial banks ................................................................................................. 31

5.4 RECOMMENDATIONS ..................................................................................................... 31

5.5 Areas for further research .................................................................................................... 32

REFERENCES .......................................................................................................................... 33

APPENDICES ........................................................................................................................... 38

ABSTRACT The study assessed the role of credit risk management on performance of commercial banks in Uganda; the specific objective of the study was to determine the relationship between credit risk management on performance of commercial banks. However, there is a concern high level of defaulters due to ineffective credit risk control mechanisms. The conceptualization of the study was based on the fact that commercial banks need effective credit risk management policies to achieve the set goals and objectives. The research embraced a research methodology that give valuable result as desired by the study research questions that gave valuable results as desired by the study research questions and objectives. The collected data were analyzed, edited and presented in a simpler form for easy interpretation using frequency tables. The study findings established that lack effective credit risk tools, inadequate staff, and poor record keeping might be the main cause of poor financial performance of commercial banks. However, the researcher argues that for the there is need/or commercial banks to undertake a role to advise their clients on the nature of loans that they apply for and their likely outcomes, provide training to their employees on how to effectively execute their responsibilities. This makes them more creative thus enhancing financial performance as desired, commercial banks should educate their clients to borrow only when it is extremely necessary, need for commercial banks to ask for collateral security from clients when securing loans. This provides a guarantee of paying back the borrowed money since some of the clients are not trust worthy. There is need for commercial banks to make decisions that are rational while allocating their finances to different borrowers.

CREDIT RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A CASE STUDY OF BARCLAYS BANK WANDEGEYA BRANCH
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Business Administration and Management
    Project ID BAM3283
    Fee ₦5,000 ($14)
    No of Pages 52 Pages
    Format Microsoft Word

    Related Works

    TABLE OF CONTENTS DECLARATION ........................................................................................................................ .i APPROVAL ................................................................................................................................ ii DEDICATION... Continue Reading
    TABLE OF CONTENTS DECLARATION ............................................................................................................... i APPROVAL .................................................................................................................... ii LIST OF TABLES... Continue Reading
    TABLE OF CONTENTS Declaration ........................................................................................ i Approval. ......................................................................................... ii Dedications ..................................................................................... .iii Acknowledgement... Continue Reading
    TABLE OF CONTENTS DECLARATION ............................................................................................................................ I .. APPROVAL ................................................................................................................................. II DEDICATION... Continue Reading
    TABLE OF CONTENTS Declaration .................................................................................................. .i Approval.. .................................................................................................... .ii Dedication... Continue Reading
    ABSTRACT The study aimed at assessing the effects of credit policy on the performance of microfinance institutions in Equity Bank of Uganda talcing the case study to be Wandegeya branch. The study mainly looked at credit risk policy and the performance of Equity bank and to find out whether this policy was effective to the bank. For effectiveness... Continue Reading
    ABSIRACT This study was set to establish the effect of bank automation on the financial performance of commercial banks in Uganda. A case study of Stanbic bank Nakivubo branch, Kampala. The purpose of the study was to examine the various bank automation tools used by commercial banks, to examine the financial performance of commercial banks and to... Continue Reading
    ABSTRACT Credit risk management is an essential function of banks and bank management strive to satisfy the legitimate credit needs of the community it tends to serve. This study is aimed at analysing the effect of credit risk management on the performance of banks in Nigeria with particular reference to Zenith Bank Kabuga branch. The importance... Continue Reading
    The study sought to assess the effect of electronic banking on financial performance of Banks in Uganda: a case study of Centenary Bank Mapeera Branch. it was guided b~ three specific objectives, that included; (i) to determine the effect of ATM (Automatic teller machine) on financial performance of Banks in Uganda, (ii) to establish the effect of... Continue Reading
    ABSTRACT The research repo1i is about e-banking and financial performance of commercial banks in Uganda, with a case study of bank of Africa Kabalagala branch. Its objectives were to examine the different types of e-banking used by Bank of Africa Kabalagala branch; to examine the effect of internet banking on the financial performance of... Continue Reading
    Call Us
    whatsappWhatsApp Us