Credit Management and Loan Portfolio Quality of Commercial Banks in Uganda: A case study of Centenary Bank
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The study examined the relationship between credit management and loan portfolio quality in Centenary Bank. Specifically, the study examined the relationship between credit appraisal; credit administration; and credit monitoring and loan portfolio quality in Centenary Bank. The study adopted a correlational research design where both quantitative and qualitative approaches were used. The study population was 125, questionnaires and interviews were used to collect data from 61 respondents. Whereas quantitative data analysis was done using regression analysis and correlation, qualitative analysis was done using content analysis. Findings revealed that credit appraisal, credit administration, and credit monitoring and recovery procedure, each had positive significant relationship with the loan portfolio quality in Centenary Bank. The study recommended that Banks should strengthen the implementation of the existing policy by ensuring enough resources and manpower is in place to implement the credit policy. Banks should always try to value all information about the customers with a high level when doing their credit assessment.