Implementation of internal controls in lending: a case of centenary bank limited.
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Date
2018-12-17
Authors
Kibira, Daniel
Journal Title
Journal ISSN
Volume Title
Publisher
Makerere University Business School
Abstract
This study was based on an examination of implement internal controls in lending with reference to Centenary Bank Limited which were; to examine the nature of internal control in lending of
Centenary Bank Limited, to examine the challenges facing internal control in lending of
Centenary Bank Limited and to find out the strategies of improving internal control in lending of
Centenary Bank Limited.
The study adopted cross sectional research design with a population study of 107 employees and sample size of 86 respondents. Cross-sectional research design was used because of the study was carried out at one point in time. The study used only quantitative data collected from the field. The questionnaires were distributed to Centenary Bank staff and partners who provided various opinions on the issue of implement internal controls in lending in centenary bank. These questionnaires were used to get the quantitative data that was used to describe the characteristics of the respondents.
The study found out that the findings revealed that the bank saw internal controls as means by which the bank’s resources are directed, monitored and measured. The board of directors and senior management are responsible for establishing the appropriate culture to facilitate an effective internal control process. Internal control ensure that the bank comply with laws and regulations as well as policies, plans, internal rules and procedures, and decrease the risks of unexpected losses or damage to the bank’s reputation. The study discovered that high-level personnel override prescribed policies and procedures for personal gain or advantage, lack of clear management accountability through the assignment of roles and responsibilities and inadequate communication of information between levels of management within the bank and lack of adequate management oversight, accountability and failure to develop a strong control culture within the bank. The management of centenary bank limited should ensure internal lending policies are effectively implemented in order to make the credit department work more effectively. The management of centenary bank should look for more ways on how to overcome the challenges affecting internal control in lending. The bank management should come up with more strategies that be used in the implementation of the internal controls in lending.
Description
A research report submitted to Makerere university business School graduate and research Centre in partial fulfillment of the requirement for the award of master of Business administration (MBA) of Makerere University, Plan B
Keywords
Internal Controls Implementation, Lending, Centenary bank limited
Citation
Kibira, D. (2018). Implementation of internal controls in lending: a case of centenary bank limited. Unpublished Master’s Research Report. Makerere University Business School, Kampala, Uganda