Abstract:
This study examined the mediation role of credit management in the relationship between board role performance and financial performance of commercial banks in Uganda. The specific objectives of the study were to: examine the relationship between board role performance and financial performance of commercial banks in Uganda, assess the relationship between credit management and financial performance of commercial banks in Uganda, establish the relationship between board role performance and credit management in commercial banks in Uganda and examine the mediating role of credit management in the relationship of board role performance and financial performance of commercial banks in Uganda. The study used a cross-sectional research design and a quantitative research approach. The study population was composed of 24 Commercial Banks in Uganda. Census approach was used to adopt the entire study population as the sample size. Data was collected using a structured questionnaire. The questionnaire tool was tested for validity and reliability using content validity index and Cronbach’s alpha and the results indicated that the tool was valid and reliable. The study obtained a response rate of 91.3%. The study established that board role performance had positive and statistically significant relationship with financial performance and credit management. Credit management had a statistically significant relationship with financial performance, and credit risk management mediates the relationship between board role performance and financial performance of commercial banks in Uganda. Based on the findings, the study concluded that credit management partially mediates the relationship between board role performance and financial performance of commercial banks in Uganda. Therefore, the study recommends that Boards should integrate credit management practices into governance strategies to maximize their impact on financial outcomes.
