Loan Management and Performance of Commercial Banks in Uganda Case Study: Centenary Bank
Year: 2016
Author: NAMANYA ALLEN
Supervisor: ODONGO JAMES
Abstract
The high rate of NPLs in commercial banks along with inadequate loan provisions diminishes the credit quality, poor enforcement laws relating to settlement of NPLs and insufficient debt recovery measures on the part of banks affects their performance hence the study to examine the relationship between loan management and the performance of commercial banks.
A cross-sectional design was used, interviews and questionnaires were administered to employees of Centenary Bank, and the data collected was analyzed using the Statistical Package for Social Sciences (SPSS). Findings reveal that loan management in terms of loan processing, loan approval and loan collection has a significant effect on the liquidity, solvency and profitability accounting for 61.9% correlation n. The overall analysis showed a positive relationship between the two variables.
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