IDEAS home Printed from https://ideas.repec.org/a/lrc/larijb/v2y2012i4p221-236.html
   My bibliography  Save this article

Effect 0f Credit Risk Management Techniques 0n The Performance 0f Unsecured Bank Loans Employed Commercial Banks In Kenya

Author

Listed:
  • Prof. R.W Gakure

    (Lecturer School of Human Resource Development,Jomokenyatta University of Science And Agriculture,P.O Box 62000- 002000 City Square)

  • John Karanja Ngugi

    (Lecturer School of Human Resource Development,Jomokenyatta University of Science And Agriculture,P.O Box 62000- 002000 City Square)

  • Peter Musangi Ndwiga

    (PhD Student In Business Administration,Jomokenyatta University of Science And Agriculture,P.O Box 62000- 002000 City Square)

  • Simon Maina Waithaka

    (PhD Student In Entrepreneurship,Jomokenyatta University of Science And Agriculture,P.O Box 62000- 002000 City Square)

Abstract

Financial risk in a banking organization is possibility that the outcome of an action or event could bring up adverse impacts. Such outcomes could either result in a direct loss of earnings / capital or may result in imposition of constraints on bank’s ability to meet its business objectives. The purpose of this study was to investigate the effect of credit risk management techniques on the performance of unsecured bank loans by commercial banks in Kenya.

Suggested Citation

  • Prof. R.W Gakure & John Karanja Ngugi & Peter Musangi Ndwiga & Simon Maina Waithaka, 2012. "Effect 0f Credit Risk Management Techniques 0n The Performance 0f Unsecured Bank Loans Employed Commercial Banks In Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 2(4), pages 221-236, August.
    • Handle: RePEc:lrc:larijb:v:2:y:2012:i:4:p:221-236
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/164/163
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. JoAnne Morris, 2001. "Risk Diversification in the Credit Portfolio; An Overview of Country Practices," IMF Working Papers 01/200, International Monetary Fund.
    2. Peters, James M. & Lewis, Barry L. & Dhar, Vasant, 1989. "Assessing inherent risk during audit planning: The development of a knowledge based model," Accounting, Organizations and Society, Elsevier, vol. 14(4), pages 359-378, July.
    3. JoAnne Morris, 2001. "Risk Diversification in the Credit Portfolio; An Overview of Country Practices," IMF Working Papers 2001/200, International Monetary Fund.
    4. William Derban & Jane Binner & Andy Mullineux, 2005. "Loan Repayment Performance in Community Development Finance Institutions in the UK," Small Business Economics, Springer, vol. 25(4), pages 319-332, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Josiah Aduda & Stephen Obondy, 2021. "Credit Risk Management and Efficiency of Savings and Credit Cooperative Societies: A Review of Literature," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(1), pages 1-7.
    2. Gbenga I . Olorunsola PhD, ACA, FCIB & Adedoyin Bunmi-Alo & Oyekunbi Olubukola Dele- Oladejo PhD, 2023. "Credit Risk Management and Efficiency of Savings and Credit Cooperative Society in Lagos State," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 505-515, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prof. R.W Gakure & John Karanja Ngugi & Peter Musangi Ndwiga & Simon Maina Waithaka, 2012. "Effect 0f Credit Risk Management Techniques 0n The Performance 0f Unsecured Bank Loans Employed Commercial Banks In Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(4), pages 221-236, August.
    2. Baah Aye Kusi & Lydia Adzobu & Alex Kwame Abasi & Kwadjo Ansah-Adu, 2020. "Sectoral Loan Portfolio Concentration and Bank Stability: Evidence from an Emerging Economy," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(1), pages 66-99, April.
    3. Mr. Aditya Narain & Mr. Pau Rabanal & Steen Byskov, 2003. "Prudential Issues in Less Diversified Economies," IMF Working Papers 2003/198, International Monetary Fund.
    4. Tabak, Benjamin M. & Fazio, Dimas M. & Cajueiro, Daniel O., 2011. "The effects of loan portfolio concentration on Brazilian banks' return and risk," Journal of Banking & Finance, Elsevier, vol. 35(11), pages 3065-3076, November.
    5. Rao, Pingui & Yue, Heng & Zhu, Jigao, 2015. "An investigation of credit borrower concentration," Journal of Banking & Finance, Elsevier, vol. 54(C), pages 208-221.
    6. Konstantin Kosenko & Noam Michelson, 2018. "It Takes More than Two to Tango: Understanding the Dynamics behind Multiple Bank Lending and its Implications," Bank of Israel Working Papers 2018.11, Bank of Israel.
    7. Ritchie, Bob & Khorwatt, Esamaddin, 2007. "The attitude of Libyan auditors to inherent control risk assessment," The British Accounting Review, Elsevier, vol. 39(1), pages 39-59.
    8. Salvador Cruz Rambaud & Joaquín López Pascual & Emilio M. Santandreu, 2023. "A socioeconomic approach to the profile of microcredit holders from the Hispanic minority in the USA," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-25, December.
    9. Lafuente, Esteban & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Conformance and performance roles of bank boards: The connection between non-performing loans and non-performing directorships," European Management Journal, Elsevier, vol. 37(5), pages 664-673.
    10. Jorge Mota & António Carrizo Moreira & Cristóvão Brandão, 2018. "Determinants of microcredit repayment in Portugal: analysis of borrowers, loans and business projects," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 17(3), pages 141-171, November.
    11. Daudi Kitomo & Robson Likwachala & Cornelio Swai, 2021. "Financial Management Practices Among Micro Enterprises and their Implications for Loan Repayment: A Case of Solidarity Group Lending of DCB Commercial Bank in Dar es Salaam," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(12), pages 122-122, December.
    12. Steven Salterio, 1994. "Researching for Accounting Precedents: Learning, Efficiency, and Effectiveness," Contemporary Accounting Research, John Wiley & Sons, vol. 11(1), pages 515-542, June.
    13. Sohail Farooq & Raza Muhammad Khan & Muhammad Akram Gilal, 2020. "Credit Risk and Profitability of Commercial Banks in Pakistan," Global Economics Review, Humanity Only, vol. 5(1), pages 75-89, March.
    14. Bilau, José & St-Pierre, Josée, 2018. "Microcredit repayment in a European context: evidence from Portugal," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 85-96.
    15. Christoph Kneiding & Paul Tracey, 2009. "Towards a Performance Measurement Framework for Community Development Finance Institutions in the UK," Journal of Business Ethics, Springer, vol. 86(3), pages 327-345, May.
    16. Gary S. Monroe & Juliana K. L. Ng & David R. Woodliff, 1993. "The Importance Of Inherent Risk Factors: Auditors‘ Perceptions," Australian Accounting Review, CPA Australia, vol. 3(6), pages 34-46, November.
    17. Fennee Chong, 2021. "Loan Delinquency: Some Determining Factors," JRFM, MDPI, vol. 14(7), pages 1-7, July.
    18. Cornée, Simon & Masclet, David, 2022. "Long-term relationships, group lending, and peer monitoring in microfinance: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 100(C).
    19. Fábio Dias Duarte & Ana Paula Matias Gama & Mohamed Azzim Gulamhussen, 2018. "Defaults in bank loans to SMEs during the financial crisis," Small Business Economics, Springer, vol. 51(3), pages 591-608, October.
    20. Philip A Collier & Stewart A Leech & Nicole Clark, 1999. "A validated expert system for decision making in corporate recovery," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 8(2), pages 75-88, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrc:larijb:v:2:y:2012:i:4:p:221-236. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al Hossain (email available below). General contact details of provider: http://www.thejournalofbusiness.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.