Browsing by Author "Jennifer Nayebale"

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    Credit Risk Management and Loan Performance of Commercial Banks in Uganda : A Case Study of DFCU Bank
    (Uganda Christian University, 2023-09-08) Jennifer Nayebale
    The study explored the relationship between credit risk management and loan performance of commercial banks in Uganda: a case of DFCU Bank. The study was guided by three objectives: examining the relationship between credit risk identification and loan performance of commercial banks, establishing the relationship between credit risk assessment and loan performance of commercial banks and assessing the relationship between credit monitoring and loan performance of commercial banks in Uganda. The study was carried out using explanatory research design where both quantitative and qualitative research approaches were utilized. Both purposive and simple random sampling methods were used to get a sample of 44 respondents from a population of 50 staff of DFCU Bank who responded to the questionnaires that were used to collect data. From the study findings, it was revealed that there is a strong positive significant relationship between credit risk identification and loan performance of DFCU Bank (r = .856**, p< .05) since the availability of a checklist of all debtors showing all the loan details and client details in the bank can help DFCU bank attain improved loan performance. Furthermore, the study concluded that there is a strong positive significant relationship between credit risk assessment and loan performance of DFCU Bank (r = .744**, p< .05) since the availability of an executive management team in the bank that conducts monitoring of credit risk to understand which potential clients may come at too high a risk and above its pre-identified risk tolerance can help DFCU bank to achieve improved loan performance.Lastly, the study concluded that there is a strong positive significant relationship between credit monitoring and loan performance of DFCU Bank (r = .663**, p< .05) since the availability of loans officers in the bank to always remind their clients who have had recent delinquency problems that their repayment day is approaching can help DFCU bank to attain improved loan performance. Finally, the study recommends that the management of commercial banks like DFCU Bank should ensure proper credit risk assessments are done so as to register superior loan performance. The researcher also recommends that the management of commercial banks should ensure credit risk monitoring is done on how their clients will use the loans not outside the agreed purpose will recover their loans.