Browsing by Author "Bantu Regina"

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    CREDIT RISK MANAGEMENT AND LOAN PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A CASE OF ABSA BANK, MUKONO, UGANDA
    (Uganda Christian University, 2025-09-11) Bantu Regina
    The study examined the effect of credit risk management on loan performance of commercial banks in Uganda with specific focus on ABSA Bank, Mukono, Uganda. It specifically focused on examining the relationship between credit risk identification and loan performance, establishing the relationship between credit risk assessment and loan performance, and exploring the relationship between credit monitoring and loan performance in ABSA Bank, Uganda. The study was carried out using a cross sectional study design where both quantitative and qualitative research approaches were also used. The data was collected using questionnaires and interviews and during data collection; both simple random and purposive sampling methods were used. A sample size of 44 respondents who are employees of ABSA Bank, Mukono and the top management of the bank was also used in the study. The study findings revealed that credit risk management practices; credit risk identification, credit risk assessment, and credit monitoring at ABSA Bank, Mukono branch, significantly and positively influence loan performance, with Pearson’s correlations showing strong relationships: credit risk identification (r = 0.672, p < 0.05), credit risk assessment (r = 0.596, p < 0.05), and credit monitoring (r = 0.654, p < 0.05), indicating that effective practices enhance repayment rates, reduce defaults, and strengthen the loan portfolio. Finally, the study recommended that ABSA Bank, Mukono branch, strengthen credit risk identification with advanced tools, maintain updated credit assessment guidelines, enhance continuous credit monitoring, provide regular staff training on modern risk management techniques and adopt risk-based client categorization to improve repayment rates, reduce defaults and sustain financial stability.