Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Independent Journal of Management & Production |
Texto Completo: | http://www.ijmp.jor.br/index.php/ijmp/article/view/658 |
Resumo: | The objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015). Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance. The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure. The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance. |
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Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Ugandacredit risk managementcredit risk identificationcredit risk appraisalcredit risk monitoringcredit risk mitigationfinancial performancemicrofinance institutionUgandaThe objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015). Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance. The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure. The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance.Independent2018-03-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdftext/htmltext/xmlhttp://www.ijmp.jor.br/index.php/ijmp/article/view/65810.14807/ijmp.v9i1.658Independent Journal of Management & Production; Vol. 9 No. 1 (2018): Independent Journal of Management & Production; 153-1692236-269X2236-269Xreponame:Independent Journal of Management & Productioninstname:Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP)instacron:IJM&Penghttp://www.ijmp.jor.br/index.php/ijmp/article/view/658/783http://www.ijmp.jor.br/index.php/ijmp/article/view/658/815http://www.ijmp.jor.br/index.php/ijmp/article/view/658/1573Copyright (c) 2018 Emenike O. Kalu, Bashabe Shieler, Christian U. Amuinfo:eu-repo/semantics/openAccessKalu, Emenike O.Shieler, BashabeAmu, Christian U.2020-08-24T01:06:53Zoai:www.ijmp.jor.br:article/658Revistahttp://www.ijmp.jor.br/PUBhttp://www.ijmp.jor.br/index.php/ijmp/oaiijmp@ijmp.jor.br||paulo@paulorodrigues.pro.br||2236-269X2236-269Xopendoar:2020-08-24T01:06:53Independent Journal of Management & Production - Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP)false |
dc.title.none.fl_str_mv |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
title |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
spellingShingle |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda Kalu, Emenike O. credit risk management credit risk identification credit risk appraisal credit risk monitoring credit risk mitigation financial performance microfinance institution Uganda |
title_short |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
title_full |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
title_fullStr |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
title_full_unstemmed |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
title_sort |
Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda |
author |
Kalu, Emenike O. |
author_facet |
Kalu, Emenike O. Shieler, Bashabe Amu, Christian U. |
author_role |
author |
author2 |
Shieler, Bashabe Amu, Christian U. |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Kalu, Emenike O. Shieler, Bashabe Amu, Christian U. |
dc.subject.por.fl_str_mv |
credit risk management credit risk identification credit risk appraisal credit risk monitoring credit risk mitigation financial performance microfinance institution Uganda |
topic |
credit risk management credit risk identification credit risk appraisal credit risk monitoring credit risk mitigation financial performance microfinance institution Uganda |
description |
The objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015). Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance. The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure. The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-03-02 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.ijmp.jor.br/index.php/ijmp/article/view/658 10.14807/ijmp.v9i1.658 |
url |
http://www.ijmp.jor.br/index.php/ijmp/article/view/658 |
identifier_str_mv |
10.14807/ijmp.v9i1.658 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
http://www.ijmp.jor.br/index.php/ijmp/article/view/658/783 http://www.ijmp.jor.br/index.php/ijmp/article/view/658/815 http://www.ijmp.jor.br/index.php/ijmp/article/view/658/1573 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Emenike O. Kalu, Bashabe Shieler, Christian U. Amu info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Emenike O. Kalu, Bashabe Shieler, Christian U. Amu |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf text/html text/xml |
dc.publisher.none.fl_str_mv |
Independent |
publisher.none.fl_str_mv |
Independent |
dc.source.none.fl_str_mv |
Independent Journal of Management & Production; Vol. 9 No. 1 (2018): Independent Journal of Management & Production; 153-169 2236-269X 2236-269X reponame:Independent Journal of Management & Production instname:Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) instacron:IJM&P |
instname_str |
Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) |
instacron_str |
IJM&P |
institution |
IJM&P |
reponame_str |
Independent Journal of Management & Production |
collection |
Independent Journal of Management & Production |
repository.name.fl_str_mv |
Independent Journal of Management & Production - Instituto Federal de Educação, Ciência e Tecnologia de São Paulo (IFSP) |
repository.mail.fl_str_mv |
ijmp@ijmp.jor.br||paulo@paulorodrigues.pro.br|| |
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1797220491410276352 |