credit risk management and financial performance of commercial banks

Description

The study set out to investigate the relationship between credit risk management and financial performance of commercial banks. Credit risk management is very important to commercial bank’s improvement of their financial performance, thus this reseach is inteded to address the extent to which credit risk management can led to increased financial performance of commercial banks. On the other hand, the study was intended to discuss the other factors that may hinder financial performance of the commercial banks apart from credit risk control. The study employed a survey reswearch design aand used self administered questionnaires, face to face interviews and FGD. Asampling design of 20 respondents was selected which composed of 4 management executives, 6 loan officers and 10 employees from barclays bank luwum street branch kampala. Findings from the study show that financial performance of commercial banks has improved due to the good credit risk management techniques and process like training of stuff on credit risk reduction. Findings also show that financial perfomance has been hindered by crashing ATMs, longlines made by the customers each day and switching systems. Fingings also show that credit risk and financial performance of commercial banks are positive hence alot of awareness and training of employees has been put in place at the bank so curb the credit risk. The reseacher thus recommends that; Barclays bank should continue with the credit risk management short courses and seminars and should penetrate into the unleashed financial community so as to boost the financial perfomance