Faculty of Commerce

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Browsing Faculty of Commerce by Author "Bateme, Calvin David"

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    Loan Targets, Moral Hazard and Performance of Loans in Commercial Banks in Uganda.
    (2024) Bateme, Calvin David
    The purpose of the study was to examine the role of loan targets and moral hazard on performance of loans of commercial banks in Uganda. The objectives were to examine the relationship between loan targets and performance of loans of commercial banks in Uganda, to examine the relationship between moral hazard and performance of loans of commercial banks in Uganda and to examine the effect of loan targets and moral hazard on performance of loans of commercial banks in Uganda. The information sharing theory guided the study. This study adopted a cross-sectional research design which aimed at data collection for two or more variables examined at a single point in time in order to detect variable patterns of association. The study was in selected commercial bank branches of Uganda, the data was collected from 160 respondents using closed ended questionnaires. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS), where information was gathered to generate descriptive and inferential statistics. The data collected revealed that loan targets had a significant positive effect on performance of loans, moral hazard also had a significant positive effect on performance of loans and both loan targets and moral hazard had a significant positive effect on performance of loans. The study recommends that commercial banks should devise mechanisms that loan targets within the acceptable standards to increase Loan Performance, banks should also set specific targets for improvement and banks should use analytics to analyze the lending process and portfolio performance.