Credit Control and Financial Performance of Selected Commercial Banks in Kampala, Uganda

TABLE OF CONTENTS

DECLARATION .................................................................................................................... i

APPROVAL SHEET ............................................................................................................... ii

DEDICATION ..................................................................................................................... iii

ACKNOWLEDGEMENT ........................................................................................................ iv

ABSTRACT ......................................................................................................................... v

CHAPTER ONE .................................................................................................................... 1

INTRODUCTION ................................................................................................................. 1

Background of the study .................................................................................................. 1

Statement of the Problem ................................................................................................ 3

Purpose of the Study ....................................................................................................... 3

Research Objectives ........................................................................................................ 3

Research Questions ......................................................................................................... 4

Hypothesis ...••...........•.........••.....•.................................•......•.........•...............•................. 4

Scope of the study .......................................................................................................... 4

Significance of the Study ................. , ................................................................................ 5

Operational Definitions of Key Terms ................................................................................ 5

CHAPTER TW0 ................................................................................................................... 6

LITERATURE REVIEW ......................................................................................................... 6

Concepts from Authors .................................................................................................... 6

Theoretical Perspectives ................................................................................................. 11

CHAPTER THREE .............................................................................................................. 13

METHODOLOGY ............................................................................................................... 13 . I

Research Design ........................................................................................................... 13

Research Population ...................................................................................................... 13

Sample Size .................................................................................................................. 13

Sampling Procedure ....................................................................................................... 13

Research Instrument ..................................................................................................... 14

Validity and Reliability of the Instrument ......................................................................... 14

Research Procedures .......................................... · ........................................................... 14

Data Analysis ................................................................................................................ 15

Ethical Considerations .................................................................................................... 15 . I

vi

Limitations of the Study ................................................................................................. 15

CHAPTER FOUR ................................................................................................................ 17

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA .............................................. 17

Respondents' demographic characteristics ....................................................................... 17

Credit Control systems in Fina Bank Uganda Limited ......................................................... 19

Financial Performance in Fina Bank Uganda Limited ......................................................... 22

Difference in Credit Control Systems and Financial Performance According to relevant

demographic characteristics ........................................................................................... 24

Relationship between Credit control systems and Financial performances in Fina Bank Uganda

Limited ......................................................................................................................... 27

CHAPTER FIVE ................................................................................................................. 30

FINDINGS, CONLUSIONS AND RECOMMENDATIONS ........................................................... 30

Findings ....................................................................................................................... 30

Conclusions .................................................................................................................. 30

Recommendations ......................................................................................................... 32

Areas for future Research .............................................................................................. 32

REFERENCES ................................................................................................................ 33

APPENDICES .................................................................................................................... 37

Research Instrument ..................................................................................................... 37

ABSTRACT The study examined the relationship between Credit Control and Financial Performance of Fina Banks Kampala, Uganda and was based on four specific objectives: (a) to determine the demographic characteristics of the respondents in terms of age, gender, educational qualifications, and years in the present position; (b) to determine the level of credit control; (c) to determine the extent of financial performance; and (d) to establish if there is a significant relationship between the Credit Control and Financial Performance of Fina Banks Kampala, Uganda. The study employed a descriptive correlation research design. SAQ were used to collect primary data from 100 out of 134 employees, using simple random sampling. Data analysis was done using SPSS's frequencies and percentages; means and PLCC. Findings revealed that majority of the respondents were female, falling in the age bracket of 24 - 30 years, with bachelor's degree, and experience between 2 - 5 years. Also means showed a very satisfactory level of credit control systems and satisfactory level of financial performance in Fina Bank Uganda Limited. PLCC revealed a positive and significant relationship between Credit control systems and financial performance in Fina Bank while regression analysis showed that credit control contribute 52% to deviation in financial performance. Basing on the above findings, the researcher made the following recommendations: (i) Manufacturing firms need to install automatic methods of inventory management and use bin cards to improve their efficiency and effectiveness; (ii) internal control system be strengthened i.e authorization, physical checking, and dispatch of goods should be controlled to ensure proper management of inventory management; (iii) firms should control costs in order to minimize the losses and (iv) firms should keep the price/earnings ratio of the organization high in order to optimize the credit controls .

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APA

BRIGHT, O (2022). Credit Control and Financial Performance of Selected Commercial Banks in Kampala, Uganda. Afribary. Retrieved from https://afribary.com/works/credit-control-and-financial-performance-of-selected-commercial-banks-in-kampala-uganda

MLA 8th

BRIGHT, OBALIM "Credit Control and Financial Performance of Selected Commercial Banks in Kampala, Uganda" Afribary. Afribary, 25 Jul. 2022, https://afribary.com/works/credit-control-and-financial-performance-of-selected-commercial-banks-in-kampala-uganda. Accessed 22 Nov. 2024.

MLA7

BRIGHT, OBALIM . "Credit Control and Financial Performance of Selected Commercial Banks in Kampala, Uganda". Afribary, Afribary, 25 Jul. 2022. Web. 22 Nov. 2024. < https://afribary.com/works/credit-control-and-financial-performance-of-selected-commercial-banks-in-kampala-uganda >.

Chicago

BRIGHT, OBALIM . "Credit Control and Financial Performance of Selected Commercial Banks in Kampala, Uganda" Afribary (2022). Accessed November 22, 2024. https://afribary.com/works/credit-control-and-financial-performance-of-selected-commercial-banks-in-kampala-uganda