dc.contributor.author | Korir, Mark .K | |
dc.date.accessioned | 2013-04-15T12:00:38Z | |
dc.date.issued | 2012 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/16018 | |
dc.description.abstract | Deposit Taking Microfinance institutions are not in the business of managing risk and not
avoiding it. The future of the banks will undoubtedly rest on risk management dynamics. Credit
is the oldest and biggest risk that a bank, by virtue of its very nature of business inherits. To most
of the transition economies lending activities have been controversial and a difficult matter. This
is because business firms on one hand are complaining about lack of credits and the excessively
high standards set by financial institutions, while financial institutions on the other hand have
suffered large losses on bad loans. The purpose of this study was to investigate the impact of
credit risk management practices on the financial performance of Deposit Taking Microfinance
institutions in Kenya.
The study used a descriptive survey approach in collecting data from the respondents. The
number of the respondents was 36 staff working in all licensed Deposit taking microfinance
institutions in Kenya. From the findings the study concludes that Deposit taking microfinance
institutions in Kenya adopted credit risk management practices to counter credit risks they are
exposed to and it also concluded that Deposit taking microfinance institutions adopt various
approaches in screening and analyzing risk before awarding credit to clients to minimize on loan
loss. This included establishing capacity/competition and conditions and use of
collateral/security and character of borrower were used in screening and risk analysis in attempt
to reduce manages credit risks. The study further concludes that there was a positive relationship
between credit risk management practices and the financial performance of Deposit taking
microfinance institutions. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.subject | Credit risk management practices | en |
dc.subject | Microfinance institutions in Kenya | en |
dc.title | Effects of credit risk management practices on financial Performance of deposit taking microfinance institutions in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business | en |