Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Investigating The Impact Of Credit Management On The Financial Performance Of Financial Institutions In Uganda, A Case Study Of Centenary Bank, Nakasongola Branch
Nakirijja Shamim, Mwesigwa Henry
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 3, No. 6 |
| Published | 30 June 2024 |
| ISSN | 3006-4384 |
Abstract
This research sought to explore how credit management influenced the financial performance of Centenary Bank's Nakasongola branch in Uganda between 2020 and 2023. As effective lending activities are integral to banks' operations and results, the study aimed to investigate relationships between specific credit management processes and key metrics of profitability and asset quality at this financial institution. A comprehensive literature review was first conducted to understand international best practices in credit risk management and examine prior empirical evidence regarding its links to financial performance. Next, a case study methodology was employed utilizing diverse secondary data sources as well as primary interviews and document reviews. Centenary Bank's internal loan policy manuals, portfolio reports, and financial statements from the study period were analyzed in depth. In addition, guided discussions were held with various branch managers and credit officers to gain qualitative insights. Rigorous quantitative and qualitative analyses were then performed. From the findings, there was a strong relationship between credit financing and the growth of bank. At Pearson correlation coefficient r =0.669. The results as depicted from the table above (r2=0.669, P=0.035) suggested a positive and significant effect on credit financing on the growth of bank in Centenary bank. The results provided strong evidence that proactive lending behaviors, including streamlined sanctioning and active borrower engagement, had substantially positive effects on both profitability and asset quality outcomes over the four years. Conversely, periods of reactive, process-driven credit approaches coincided with short-term dips in financial metrics. Broader insights into optimizing credit management were also derived from triangulating quantitative and qualitative findings.
Keywords
Credit
Management
Financial and Performance
Cite This Article
Nakirijja Shamim & Mwesigwa Henry (2024). Investigating The Impact Of Credit Management On The Financial Performance Of Financial Institutions In Uganda, A Case Study Of Centenary Bank, Nakasongola Branch. Metropolitan Journal of Academic Multidisciplinary Research, 3(6). https://journals.miu.ac.ug/pages/article.php?article_id=1775
More in This Issue
View full issue →
6
Budgetary Financing And Service Delivery. A Case Study Of Kayunga District Local Government
Budgetary
Financing
Service and Delivery
7
Cash Flow Management And Its Impact On The Success Of Small And Medium Sized Enterprises. A Case Study Of Imaniro Sub County Mayuge District
Cash Flow Management
Small And Medium Sized Enterprises
8
Contract Administration And Performance Of An Organisation: A Case Of National Water And Sewage Corporation Kampala Branch
Contract
Administration
Performance and Organisation
9
Credit Management And Organizational Performance. A Case Study Of Centenary Bank Kawempe Branch.
Credit Management
Organizational and Performance
10
Effects Of Financial Management Practices On The Business Performance Of Small And Medium Enterprises In Kampala District
Financial
Management Practices
Business Performance
Small And Medium Enterprises