Browsing by Author "Ahabwe Ritah"

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    Credit Risk Management, Loan Portfolio Quality, and Financial Performance of Savings and Credit Cooperatives (Saccos) In Mbarara City.
    (Makerere University Business School, 2025-10-24) Ahabwe Ritah
    This study examined the association between the management of credit risk, loan portfolio quality, and the financial performance of SACCOs in Mbarara City, Uganda. The study was conducted because the financial performance of the SACCOs in Mbarara has been on the decline, as shown by an increase in the trend of written-off loans, which are non-performing and exceed the acceptable non-performance rate of 5% set by the industrial benchmark. The researcher used an explanatory design and employed primary data sources with the aid of a structured questionnaire. Data was processed using SPSS software to obtain descriptive statistics and conduct correlation as well as regression analyses to study the association of the variables with each other. Results from correlation analysis showed a positive and significant association between management of credit risk, quality of the loan portfolio, and financial performance. This denotes that the two variables have a direct association with the financial performance of SACCOs. Multiple regression analysis indicated that management of credit risk and quality of the loan portfolio significantly predict financial performance by 23.1%. The study concludes that financial performance is determined when management and staff members of the SACCO identify, measure, mitigate, and control credit risks. The study suggests that Risk Departments of SACCOs should always examine risks likely to affect their financial performance. Management of SACCOs should regularly conduct reviews of risks which might affect their financial performance.’