Browsing by Author "Nagudi Shakira"

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    Credit Management and Financial Performance of Commercial Banks: A Case Study of Dfcu Bank Mbale Branch
    (Uganda Christian University, 2024-08-27) Nagudi Shakira
    The study examined the effect of credit management practices on the financial performance of Commercial Banks in Uganda, focusing specifically on DFCU Bank Mbale branch. The study employed a mixed-methods research design to comprehensively explore credit management practices and their impact on the financial performance of DFCU Bank's Mbale Branch involving interviews with 40 purposively sampled staff members, including individuals like the branch manager, the study aimed to assess the influence of credit analysis, credit risk controls, and credit collection policy on the branch's performance. Findings from the study underscored the critical role of these credit management practices in shaping the financial performance of DFCU Bank Mbale branch. Effective credit analysis was found to enhance the branch's ability to make informed lending decisions, thereby reducing default risks and improving loan quality. The implementation of robust credit risk controls was crucial in mitigating risks associated with lending activities, ensuring compliance with regulatory standards, and safeguarding the branch against credit losses. Furthermore, a well-defined credit collection policy was shown to optimize cash flow management and minimize non-performing assets, thereby enhancing overall financial stability. In conclusion, the study recommends that DFCU Bank Mbale branch enhance its credit analysis procedures, strengthen its credit risk controls, and refine its credit collection policies. These measures are essential for optimizing the branch's financial performance, improving loan portfolio management, and sustaining long-term profitability amidst the dynamic banking environment in Uganda. By focusing on these strategic areas, the branch can effectively mitigate risks, enhance operational efficiency, and achieve sustainable growth in the competitive banking sector.