The Effects Of Credit Policy On The Performance Of Commercial Banks Case Study: Kenya Commercial Bank; Moi Avenue Branch, Kenya

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TABLE OF CONTENT ............................................................................................................................................... .

DECLARATION.......................................................................................................................................................... Ill

APPROVAL ........................................................................................................................................................... V

DEDICATION........................................................................................................................................................... VI

ACKNOWLEDGEMENT...................................................................................................................................... VII

ABBREVIATIONS................................................................................................................................................. VII

CHAPTER ONE

1.0 INTRODUCTION......................................................................................................................................... 1

1.1 BACKGROUND OF CASE STUDY.............................................................................................................. 1

1.2 STATEMENT OF THE PROBLEM............................................................................................................... 2

1.3 OBJECTIVE OF THE STUDY........................................................................................................................ 2

1.3.1 GENERAL OBJECTIVE....................................................................................................................... 3

1.3.2 SPECIFIC OBJECTIVE........................................................................................................................ 3

1.4 RESEARCH QUESTIONS............................................................................................................................... 3

1.5 SCOPE OF THE STUDY.................................................................................................................................. 3

1.6 SIGNIFICANCE OF THE STUDY.................................................................................................................... 3

1.7 LIMITATIONS OF THE STUDY..................................................................................................................... 4

1.8 CONCEPTUAL FRAMEWORK........................................................................................................................ 4

CHAPTER TWO

2.0 INTRODUCTION.......................................................................................................................................... 6

2.1 DEFINITION OF CREDIT POLICY............................................................................................................... 6

2.2 CREDIT POLICY AND ITS IMPORTANCE..................................................................................................... 6

2.3 RELATIONSHIP BETWEEN CREDIT POLICY AND FINANCIAL PERFORMANCE.................................... 7

2.4 CREDIT RISK................................................................................................................................................. 7

2.5 CREDIT EVALUATION................................................................................................................................. 8

2.6 CREDIT STANDARDS AND ANALYSIS................................................................................................. 9

2. 7 CREDIT TERMS................................................................................................................................................ 9

2.7.1 DETERMINANTS OF CREDIT TERMS IN COMMERCIAL BANKS.................................................. 10

2.8 COLLECTION POLICY.......................................................................................................................... 10

2.9 IMPACTS OF CREDIT POLICY ON PERFORMANCE OF COMMERCIAL BANKS........................................ 11

CHAPTER THREE

3.0 RESEARCH METHODOLOGY..................................................................................................................... 12

3.1 RESEARCH DESIGN........................................................................................................................................ 12

3.2 POPULATION AND SAMPLE......................................................................................................................... 12

3.3 SAMPLING DESIGN AND SIZE...................................................................................................................... 12

3.3.1 SAMPLING DESIGN................................................................................................................ 12

3.3.2 SAMPLE SIZE..................................................................................................................... 13

3.3.3 DATA SOURCE, COLLECTION AND ANALYSIS....................................................................... 13

3.3.3.1 DATA SOURCE........................................................................................................ 13

3.3.3.2 DATA COLLECTION METHODS AND INSTRUMENTS.............................................. 13

3.3.3.2.1 INTERVIEWING METHOD........................................................................ 13

3.3.3.2.2 QUESTIONNAIRES METHOD

3.3.4 DATA PROCESSING AND ANALYSIS......................................................................................... 14

CHAPTER FOUR

4.0 INTRODUCTION................................................................................................................................................ 15

4.1 RESPONDENTS BY SEX......................................................................................................................... 15

4.1.1 RESPONDENTS' AREA OF SPECIALIZATION............................................................................. 16

4.1.2 LENGTH OF SERVICE................................................................................................................ 17

4.2 REVIEW OF CREDIT POLICY................................................................................................................. 19

4.2.1 QUALIFICATIONS FOR A CLIENT TO ACCESS BANKS LOAN................................................... 20

4.2.2 EFFECTIVE CREDIT MANAGEMENT......................................................................................... 20

4.2.3 RESPONSE ON THE IMPACT OF CREDIT POLICY ON THE PERFORMANCE OF KCB BANK......... 20

4.2.4 HOW INTEREST RATE TO CHARGE A CLIENT IS DETERMINED BY THE KCB BANK................... 21

4.2.5 THE REPAYMENT PERIOD FOR PARTICULAR LOANS............................................................... 21

4.3 RESPONSE ON THE RELATIONSHIP BETWEEN CREDIT POLICY AND PERFORMANCE OF KCB BANK...... 22

4.4 RESPONSE ON CREDIT RECOVERY APPROACH.............................................................................. 22

4.5 STRENGTH AND WEAKNESSES OF KCB'S CREDIT POLICIES. ................................................................ 23

4.6 RESPONSE ON APPROVAL OF LOAN FACILITIES................................................................................. 24

4.7RESPONSE ON THE EFFECTIVENESS OF THE POLICY.................................................................................... 25

4.8 CLIENTS' RESPONSE ON THE EFFECTS OF CREDIT POLICY ON THE BANK PERFORMANCE.................... 26

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APA

SSA, R (2021). The Effects Of Credit Policy On The Performance Of Commercial Banks Case Study: Kenya Commercial Bank; Moi Avenue Branch, Kenya. Afribary.com: Retrieved June 19, 2021, from https://afribary.com/works/the-effects-of-credit-policy-on-the-performance-of-commercial-banks-case-study-kenya-commercial-bank-moi-avenue-branch-kenya

MLA 8th

Research, SSA. "The Effects Of Credit Policy On The Performance Of Commercial Banks Case Study: Kenya Commercial Bank; Moi Avenue Branch, Kenya" Afribary.com. Afribary.com, 03 Jun. 2021, https://afribary.com/works/the-effects-of-credit-policy-on-the-performance-of-commercial-banks-case-study-kenya-commercial-bank-moi-avenue-branch-kenya . Accessed 19 Jun. 2021.

MLA7

Research, SSA. "The Effects Of Credit Policy On The Performance Of Commercial Banks Case Study: Kenya Commercial Bank; Moi Avenue Branch, Kenya". Afribary.com, Afribary.com, 03 Jun. 2021. Web. 19 Jun. 2021. < https://afribary.com/works/the-effects-of-credit-policy-on-the-performance-of-commercial-banks-case-study-kenya-commercial-bank-moi-avenue-branch-kenya >.

Chicago

Research, SSA. "The Effects Of Credit Policy On The Performance Of Commercial Banks Case Study: Kenya Commercial Bank; Moi Avenue Branch, Kenya" Afribary.com (2021). Accessed June 19, 2021. https://afribary.com/works/the-effects-of-credit-policy-on-the-performance-of-commercial-banks-case-study-kenya-commercial-bank-moi-avenue-branch-kenya