Conceptual Understanding of Credit Risk Management and Portfolio Performance| Chapter 8 | New Innovations in Economics, Business and Management Vol. 10

The research for this study comes from interviews with purposefully chosen members of the credit risk management team, including credit risk employees, relationship managers, and credit officers, from eight (8) commercial banks in Uganda. Additionally, the opinions of the personnel of the Bank of Uganda, the country's regulator, as well as the Uganda Bankers Association, the country's umbrella group for all commercial banks, were requested. Portfolio quality concerns have long been a problem for Uganda, which has led to a number of financial difficulties. Existing empirical research suggests a relationship between portfolio performance and credit risk management, suggesting that, in order to enhance portfolio performance, credit risk management must be addressed. It presupposes a linear relationship between credit risk management and portfolio performance. This study expands the body of knowledge by exploring the credit risk management method in greater detail. As credit risk management progresses through its many stages, it uncovers possible links. Through more regular loan monitoring, loan restructuring, relationship management, and post-sale financial literacy, the credit risk management function has to put an emphasis on adjusting the initial treatment methods.

Author(s) Details:

Kansiime Mary Nyende,

DFCU Bank, Kampala, Uganda.

Saturninus Kasozi-Mulindwa,

Director Programs and Students Affairs, Uganda Management Institute, Uganda.

Please see the link here: https://stm.bookpi.org/NIEBM-V10/article/view/7413