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 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 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.
