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Effect of Innovative Credit Management Practices on Loan Portfolio Performance of Commercial Banks: A Case of Commercial Banks in Lira City, Uganda

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  • Lanyero Esther

    (Postgraduate Student Kampala International University, Uganda)

  • Dr. Nyakundi Andrew

    (Postgraduate Student Kampala International University, Uganda)

  • Dr. Manyange Michael

    (Postgraduate Student Kampala International University, Uganda)

Abstract

Commercial banks play a vital role in economic development of a country through offering financial services. However, they are experiencing increased level of non-performing loans (NPLs) ,consequently affecting their profitability and growth. Therefore the objectives of the study were to: evaluate the effect of credit assessment, credit monitoring and credit risk management on loan portfolio performance. The study adopted correlational research design and quantitative research approach.Total population was 156 and a sample of 112.Stratified random sampling and purposive sampling were used to select respondents. Data was collected using a Questionnaire and analyzed using multiple linear regression technique with help of SPSS. The independent variables explained 40.5%(R2=.405) of variations in loan portfolio performance .All the variables tested revealed statistically significant effects: Credit assessment(t=5,205,P=0.000,P

Suggested Citation

  • Lanyero Esther & Dr. Nyakundi Andrew & Dr. Manyange Michael, 2024. "Effect of Innovative Credit Management Practices on Loan Portfolio Performance of Commercial Banks: A Case of Commercial Banks in Lira City, Uganda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 2573-2583, November.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:2573-2583
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    References listed on IDEAS

    as
    1. Lorna Katusiime, 2021. "COVID 19 and Bank Profitability in Low Income Countries: The Case of Uganda," JRFM, MDPI, vol. 14(12), pages 1-19, December.
    2. Tribhuwan Kumar Bhatt & Naveed Ahmed & Muhammad Babar Iqbal & Mehfooz Ullah, 2023. "Examining the Determinants of Credit Risk Management and Their Relationship with the Performance of Commercial Banks in Nepal," JRFM, MDPI, vol. 16(4), pages 1-23, April.
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