| dc.description.abstract | This research examined the effect of credit policies on the performance of commercial banks in
Uganda with Case study Kenya commercial bank (KCB). It looked at the objectives which are;
To evaluate the effect of credit appraisal on the performance of Kenya Commercial Bank, To
evaluate the effect of loan approval on the performance of Kenya Commercial Bank., To
evaluate the effect of loan disbursement on the performance of Kenya Commercial Bank., To
establish the relationship between loan recovery and the performance of Kenya commercial
banks. A descriptive research design was used to collect the data from the field and a simple
random sampling and Purposive sampling techniques were used to come up with a sample of 48
respondents. A questionnaire was used to collect data from 48 respondents in KCB. However
only 48 questionnaires were returned. Both descriptive and inferential analysis was done.
Analysis of Variance and regression analysis were used to test the hypothesis. The results
showed that there is a positive relationship between Loan Recovery management and financial
performance of commercial banks in Uganda.
The main motive for this research was to come up with policies such that KCB can recover loans
from defaulters, bank can provide some advice to the borrower for repaying the loan. However
from the findings of the research study, a strong positive relationship (r = 0.755) was revealed
which implies that reasonable loan recovery values boosts financial performance of the financial
institution. Therefore, the researcher recommended that there is need for commercial banks to
enhance their customer’s techniques so as to improve their financial performance. Through client
appraisal techniques, the companies could be able to know credit worth customers and thus
reduce default and enhance their collection procedures and policies by adapting a more policies
for effective loan recovery. | en_US |
