| dc.description.abstract | The study assessed Credit reference bureau services and loan performance in the MDIs in
Uganda. The specific objectives were; to establish the trend of loan performance, before and
after the introduction of CRB, to assess the operational performance of the CRB and investigate
the relationship between CRB and loan performance. The study used a survey research design,
using both quantitative and qualitative approaches. The study covered a period 2006 to 2014 and
sample size of 100 respondents was used. Data was collected using the questionnaire, interview
guide and documentary review. The research discovered that sharing of credit information with
CRB has helped to improve the clients’ repayment record. The trend of default rate had
improved since the introduction of the CRB (2008-2014), compared to 2006-2007 when the CRB
had not yet been introduced. It was also found out that there is a positive relationship between
CRB and loan performance. Most clients responded that they were aware that if they repaid their
loans on time, the good credit history will be shared with other financial institutions and hence
enable them have easy access to the facilities, similarly the poor repayment record is shared with
other financial institutions. The successful CRB implementation is hampered by a couple of
challenges including, delays in data submission, submission of inaccurate data, system failure,
complexity of credit reports, thus making it difficult to interpret by the borrowers and foreign
currency risk experienced by MDIs. The study recommends that the Central bank should
enhance its efforts in continuing to create awareness of the CRB. A new regulatory regime
should be put in place to ensure that even institutions not supervised and licensed by the Central
bank can submit credit data on the CRB. Additionally, institutions that submit data on the bureau
should ensure that the data is accurate and timely. | en_US |
