Credit management and financial performance of commercial banks:

Abstract

The study was carried out under the topic Credit Management and Financial Performance of commercial Banks a case of Stanbic bank Mbale branch Uganda. The objectives of the study were to assess the influence of credit appraisal, examine the effect of credit administration, and assess the effect of credit monitoring and financial performance of Stanbic bank Mbale branch. The study employed cross-sectional approach together with the descriptive and quantitative research design in exploring issues and understanding the phenomena. Simple random sampling was employed in selection of respondents and the sample size was determined using Krejcie & Morgan table (1970). For purposes of this study, both primary and secondary data was used. Data was collected from 35 as target population with sample size being 32 respondents. Data was collected using questionnaires and analyzed using SPSS from which frequency tables; reliability, correlation and regression results were obtained. The study findings revealed that there is a positive relationship between credit appraisal and financial performance, credit monitoring and financial performance as well as credit administration and financial performance. The study therefore, recommends that in order to improve financial performance, credit appraisal, credit monitoring and credit administration should be handled with care by the managers before and after the loan is disbursed