dc.description.abstract | Since banks core business is lending, they are viewed as business with huge risk
appetite with lending activities being one of the key sources of credit risk. Among the
risks that banks face, credit risk is of great concern to most bank authorities and
banking regulators since it easily and most likely prompts bank failure. Credit risks
faced by commercial banks are not only a threat to its financial performance but also
to the financial market.The main aim of the current research study was to evaluate the
extent to which credit risk management policies influenced the loan book in terms of
quality at Barclays bank of Kenya.The researcher adopted the case study research
design as it places more emphasis on full contextual analysis of fewer events or
conditions and the interventions. The study used primary data that was obtained with
the help of personal interview steered by the use of interview guide. Once the data
was collected, content analysis was used to conduct an analysis on a text, after the
text was coded, into manageable concepts which were quantified and tarried using the
basis method of content analysis, the conceptual analysis.From the findings, it is clear
that loan portfolio at Barclays Bank of Kenya was influenced by credit risk
management policies. The conclusion was that lenders need to levy their customer’s
reasonable interest rates. In this regard, loan portfolio performance tends to get better
thus enhanced lender returns. Subsequently, reduced interest rates attract new
customers thereby improving income levels to the bank. This research explained fifty
seven percent variance of NPA’s in banks. Further research needs to be done to
include the additional determinants hence reveal the remaining NPA variance. | en_US |