Josephine Ampeire2023-09-082023-09-082023-09-06https://hdl.handle.net/20.500.12311/997This is a dissertation.The study examined the effect of credit risk management on financial performance of Housing Finance Bank. The Specific Objectives of the study were to examine the effect of Credit monitoring, Credit Risk assessment and Credit Risk policy on the financial performance of Housing Finance Bank. The study used a cross-sectional survey design using both qualitative and quantitative approach to collect data from a sample of 59 respondents. Questionnaires were used to collect the data. Quantitative data was analysed using measurement of central tendency and qualitative data was analysed using correlations and regression analysis techniques. The study found a positive and significant relationship between credit monitoring and financial performance, credit risk assessment and financial performance, credit policy and financial performance The study concluded that effective credit risk management through risk monitoring, assessment and policy in financial institutions if well managed has a resultant significant positive effect on the financial performance of the bank and vice versa. The study recommends that to achieve the desired sales revenue and profitability, financial institutions should be guided by a philosophy of continuously exploring all possible risk origins and their classification to guide credit risk assessment; continuously exploring existing and incidental credit risk data and risk estimation using industry best responsive credit risk estimation models/techniques; review and strengthen the credit mitigation and monitoring mechanism through continuous training and allocations of necessary resources for the credit recovery team.enDissertation