Faculty of Commerce

Permanent URI for this community

http://localhost:4000/handle/20.500.12282/3116

Browse

Browsing Faculty of Commerce by Author "Kitenda, Hassan"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Loan Portfolio Management, Income Diversification and Liquidity of Commercial Banks in Uganda.
    (2024) Kitenda, Hassan
    The purpose of the study was to establish the relationship between loan portfolio management, income diversification, and liquidity in commercial banks in Uganda. A quantitative research design was adopted in the study. The target population of this study was the commercial banks licensed by the Bank of Uganda by December 2019. Time-series cross sectional secondary panel data was analyzed. The data was obtained from all audited published financial statements of accounts of all commercial banks in Uganda between 2011 and 2019. In the measurement of variables, the non-performing loan ratio, the non-interest income ratio, and the loan-to-deposit ratio were considered, and financial ratio analysis was employed to calculate them. The pairwise correlations between the variables were carried out. F-tests were used to determine the significance of the regression, while the coefficient of determination, overall, within and between R 2, was used to determine how much variation in the dependent variable is explained by independent variables. The findings of the study indicated that loan portfolio management has a significant negative effect on liquidity. Findings further suggested that income diversification had a negative but statistically insignificant effect on liquidity. Therefore, the study recommends that for commercial banks to remain liquid, good portfolio management strategies should be adopted to minimise repayment defaults, which result in an increase in the level of non-performing assets.