Faculty of Business Administration and Management

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An Assessment of the Contribution of Individual Borrowers Credit Analysis to the Management of Loan Default Rates in Financial Institutions: A Case Study of DFCU Group Ltd.
(Uganda Martyrs University, 2006) Ssemmanda, Henry, Joseph
SSEMMANDA HENRY JOSEPH (2006-03-MBA-PT-072) An Assessment of the Contribution of Individual Borrowers Credit Analysis to the Management of Loan Default Rates in Financial Institutions: A Case Study of DFCU Group Ltd. This research considered an assessment of the contribution of borrower’s credit analysis to the management of loan default rates in financial institutions with a case study of DFCU Bank Ltd. Despite the credit analysis by banks, clients fail to fulfil their credit obligations thereby increasing the credit risk of the financial institution by defaulting on payments. The research was conducted in selected DFCU branches in Kampala where the researcher examined the borrower credit analysis methods used by DFCU Bank and their contribution towards loan default management. Bank credit committees conduct analyses through which loan applications are approved or rejected. The credit score determines the client’s credit worthiness by understanding character and establishing their capacity to pay loans, the nature and value of collateral involved and the general economic conditions before credit decisions are made. The client’s credit history was pivotal in determining their creditworthiness hence reducing the credit risk exposure of the bank. The credit history is contained on a financial card which Bank of Uganda through the Credit Reference Bureau has identified as an effective way of fighting loan disbursement irregularities in the sector. A cross sectional survey design provided an in-depth study of the client screening elements that determine client credit worthiness where both qualitative and quantitative methods were used for data collection. A stratified sample of seventy two respondents from Kikuubo, Owino and Market Street, representing seventy five percent of the staff in DFCU bank in Kampala was selected. Questionnaires, interviews, and informal discussions were administered to a purposive sample of staff in the credit department. The researcher noted that the credit history of clients was pivotal in determining their creditworthiness hence reducing the credit risk exposure of the financial institution. Key Words: Credit, Loan, Financial, Bank
Assessment of Workforce Diversity and Business Performance in the Banking Sector: A Case Study of Centenary Bank, Mbarara Branch.
(Uganda Martyrs University, 2011) Kababiito, Annet
KABABIITO ANNET (2011-M102-20031) Assessment of Workforce Diversity and Business Performance in the Banking Sector: A Case Study of Centenary Bank, Mbarara Branch This study assessed how workforce diversity improves performance in the banking sector. Specifically, the study looked at the influence of social demographic characteristics diversity of employees on organisational performance; the relationship between task-related attributes diversity and organisational performance; and the relationship between employees‟ status diversity and organisational performance. A cross sectional design was used in the study for quantitative and qualitative analysis on a sample of 48 respondents. Data were obtained by use of a questionnaire, interview guide and secondary documents. The data were further analysed quantitatively and qualitatively. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) programme, version 17.0. Hypotheses were analysed with Pearson’s Correlation Coefficient Index (PCC) to establish relationships. Cross tabulations were carried out and frequency percentages calculated. Qualitative data were interpreted by composing explanations and substantiating them using the respondents‟ open responses. The study found out that social demographic characterises diversity of employees has an influence on organisational performance. There is a relationship between task-related attributes diversity and organisational performance. There is a relationship between employees‟ status diversity and organisational performance. The study, therefore, concludes that social demographic characteristics diversity influences the performance of the organisation in different ways. Task related attributes diversity enables organisations to enhance their performance. Employees‟ status diversity enhances the performance of organisations. The recommendations of the study are: organisations such as banks should have strategies for managing the social demographic characteristics diversity for its workforce. Management of organisations should also put in place strategies such as rotational deployment and capacity building and training to enhance performance of organisations. Management should also decentralise, departmentalise, carry out periodical trainings, mentoring courses, regular appraisals, promote and pay basing on efficiency to enhance performance. Key Words: Diversity, Workforce, Business, Banking, Bank
E-banking and Customer Service in Commercial Banks: A Case Study of Barclays Bank Uganda limited, Kampala Road Branch.
(Uganda Martyrs University, 2011) Mawanda, Edwin, Martin
MAWANDA EDWIN MARTIN (2011-M102-20047) E-banking and Customer Service in Commercial Banks: A Case Study of Barclays Bank Uganda limited, Kampala Road Branch The purpose of the study was to establish the relationship between electronic banking and customer service in commercial banks with a case study of Barclays Bank Uganda Limited, Kampala road branch. The researcher chose this commercial bank because of its strong market presence and its very long existence in the country. The methodology involved the analysis of the tools of electronic banking such as online banking. The sample was obtained using the simple random sampling technique while the survey instruments used were an interview guide comprising of open-ended questions and questionnaires with Likert type of questions. The Likert type questions have a 5 point scale (1 = I strongly disagree and 5 = I strongly agree). The instrument was administered to about 100 respondents. The statistical data were analysed quantitatively and qualitatively. The quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) version 17.0. The objectives where analysed with Pearson‟s Correlation Coefficient Index (Pcc) test statistic and frequency percentages. Qualitative data were interpreted through explanations using the respondents‟ open responses. From the findings of the study, it was discovered that electronic banking had a positive impact and highly improved on customer service in the bank. The researcher, thus, concluded that e-banking has a very significant relationship and positive satisfaction. The research then recommended that; there is need to install fast service e-banking systems, need for trust building among the customers in commercial banks with e-banking products and services, need to ensure security and privacy for all e-banking products and services, monitoring and evaluating the usage of the implemented e-banking technologies and placing more emphasis on the awareness of electronic banking while educating individual customers on its existence and benefits. Key words: Customer, E-banking, Service, Commercial, Bank
The Effect of Financial Reporting on the Performance of Commercial Banks in Uganda: A Case Study of Centenary Rural Development Bank.
(Uganda Martyrs University, 2011) Najjumba, Ritah
NAJJUMBA RITAH (2011-M102-20062) The Effect of Financial Reporting on the Performance of Commercial Banks in Uganda: A Case Study of Centenary Rural Development Bank The study established the effect of Financial Reporting on the Performance of Commercial Banks in Uganda based on the Agency and the Goal Setting Theories. Financial Reporting was viewed in terms of financial reports, audit reports, corporate governance reports, and sustainability reports. Organisational performance was viewed in terms of profitability, productivity, and quality. The purpose of the study was to establish the relationship between financial reporting and organisational performance. A sample of 46 participants was randomly selected to be part of the study at Centenary Rural Development Bank, Nakivubo and Kireka branches. A structured five-point Likert type questionnaire was designed and administered with a 95.6% response rate. An interview guide for key informants was also designed and helped in getting information from respondents on the subject under study. In analysing the data, descriptive analysis, correlation analysis, and regression analysis were used to do the analysis of the data. The findings showed that there is a positive relationship between financial reporting and organisational performance. It was also revealed form the findings that the independent variables (financial reports, audit reports, corporate governance reports, and sustainability reports) predicted to 48.8% of the variations in the dependent variable (organisational performance). The study, therefore, concluded that human capital financial reporting positively affects performance of an organisation. It was recommended that financial reporting should be made key in organisations since it positively influences performance. The study also revealed that the independent variables accounted for only 48.8% of the variations in the dependent variable; it was, therefore, recommended that further research has to be done to find out the other factors which account for the remaining 51.2%. Having carried out the study in a banking sector, it can also be conducted in other organisations. Key words: Financial, Performance, Commercial, Bank, Reporting
The Effect of Interest Rate Changes on the Performance of the Loan Portfolio: A Case Study of Stanbic Bank Uganda Limited.
(Uganda Martyrs University, 2011) Monday, Godfrey
MONDAY GODFREY (2011-M102-20050) The Effect of Interest Rate Changes on the Performance of the Loan Portfolio: A Case Study of Stanbic Bank Uganda Limited Interest rate changes have been in existence since time immemorial, however, in recent times there has been increased volatility in interest rate changes especially the period from July, 2011 to date. It has also been noted that in recent times, banks have experienced increase in loan defaults as well as stated by (Hoque 2004, World Bank 1993 and Calomiris and Himmelberg, 1993). There has been hardly any bank or Development Financial Institution (DFI) in developing countries which has not experienced persistent loan default. This is evidenced by the under-capitalisation and illiquidity of 160 DFIs in 33 developing countries. The loanable funds theory (Black and David, 1998), Classical theory of interest rates, and the liquidity preference theory of interest rates (Keynes, 1936)-all the three theories agree that interest rates are as a result of forces of demand and supply. This study aimed at establishing the effect of interest rate changes on the performance of the loan portfolio taking a case study of Stanbic Bank Uganda Limit. The objectives of the study were used as a guide to the study and the research questions and conceptual framework was developed to answer the research objectives and research questions. The review of existing literature on the subject was done and a case study research design was used to carry out the research. Questionnaires were developed and used to collect data from 57 respondents out of a population of 72 staff of the credit department. The research established that inflation, high demand for funds, costs of operation, profit motive, and the monetary policy are all determinants of interest rate changes. It was also established that interest rate changes are a major determinant of loan demand and loan repayment. It was further established that there is a strong positive relationship between inflation, interest rates, demand for loans and loan repayments. It was concluded that interest rate changes have a very big effect on the performance of a loan portfolio, both positively and negatively. It was recommended that, therefore, there is need to invest into research to find a solution on how to deal with volatility of interest rates. Key words: Interest, Portfolio, Rate, Loan, Performance, Bank
The Effect of Motivational Strategies on Employee Turnover Intentions among Indigenous Banks of Uganda: A Case Study of Centenary Bank, Kampala Branches.
(Uganda Martyrs University, 2009) Owor, Olive
OWOR OLIVE (2009-M102-20011) The Effect of Motivational Strategies on Employee Turnover Intentions among Indigenous Banks of Uganda: A Case Study of Centenary Bank, Kampala Branches The study objectives were to examine the motivational strategies; the level of employee turnover intentions and to establish how the motivational strategies are influencing employee turnover intentions in Centenary Bank. The major question is, how are motivational strategies influencing employee turnover intentions in Centenary Bank? The study used a cross-section correlation study design approach considering both quantitative and qualitative approach. Structured questionnaires and interviews were used on the population of Centenary Bank’s six Branches in Kampala. The General Manager Human Resource, Branch Managers, Assistant Branch Managers, Supervisors and Officers were sampled using purposive and simple random sampling techniques. The data collected were processed using the Statistical Package for the Social Sciences (SPSS) of which qualitative data were presented in a narrative form while the quantitative data were presented using graphs, frequencies, percentages, and correlation and regression analyses. The study found out that more than half of the employees perceived their basic pay and incentives to be inadequate. Almost half of the employees perceived their jobs not to provide for intrinsic job characteristics such as skills variety, task significance, and job autonomy and job feedback. About half of the staff perceived the career development practices to be inadequate while few managers exhibited transformational leadership practices. Also, the study found out that although a reasonable number of employees of the bank had developed an attitude and made decisions to quit the bank, a few (less than 3/10) had reached turnover intention behaviour. The conclusion is that motivational strategies in indigenous banks had a significant relationship with turnover intentions and an increase in motivational strategies reduces the turnover intentions among employees in the bank. The study recommends that to mitigate turnover intentions and actual turnover, the board and management of indigenous banks should enhance the basic pay, incentives, job design, career development and leadership motivational strategies. Key words: Motivation, Turnover, Bank
Effectiveness of Risk Management Practices on Financial Performance of Commercial Banks in Uganda.
(Uganda Martyrs University, 2008) Nankebe, Sylvia, Margaret
NANKEBE SYLVIA MARGARET (2008-M102-20090) Effectiveness of Risk Management Practices on Financial Performance of Commercial Banks in Uganda The study is on the effectiveness of risk management practices on financial performance of commercial banks in Uganda. The study’s objectives included (1) establishing the extent to which credit risk management influenced financial performance of selected commercial banks in Uganda (2) examination of the relationship between market risk management and financial performance of selected commercial banks in Uganda (3) establishing the relationship between operational risk management and financial performance of selected commercial banks in Uganda. The study used a cross-sectional research design using quantitative approaches on a population of managers, supervisors and officers of selected commercial banks in Uganda selected using the stratified sampling method. The study used a questionnaire to collect primary data from respondents. The data were processed using the Statistical Package for the Social Sciences (SPSS) and quantitative data were analysed using graphs, mean, standard deviation, correlation and regression techniques. The study found that commercial banks used and emphasised adherence to credit, market and operation risk management practices. The credit, market and operation risk management practices had a positive significant relationship with financial performance and they were significant predictors of financial performance although operational risk management was the strongest predictor of financial performance while market risk management was the weakest predictor of financial performance. The study concluded that sustained financial performance among commercial banks was dependent on effective credit, market and operational risk management. The study recommended that the board of directors, management and staff should emphasise adherence to credit, market and operational risk management. Other studies need to investigate the influence of other variables such as competition within the industry, consumer confidence in the financial sector since they were thought to predict the variance of 57.4% of the financial performance. Key words: Effectiveness, Risk, Management, Performance, Commercial, Bank
Evaluation of the Effectiveness of Internal Control Procedures on the Performance of Microfinance Providers: A Case study of Centenary Rural Development Bank
(Uganda Martyrs University, 2008) Byarufu, Xavier
BYARUFU XAVIER (2008-M102-20025) Evaluation of the Effectiveness of Internal Control Procedures on the Performance of Microfinance Providers: A Case study of Centenary Rural Development Bank This study evaluated the effectiveness of internal control procedures on the performance of microfinance service providers. Data used for the study were collected from Centenary Rural Development Bank. Eighty respondents who included branch managers and loan officers (30 branch managers and 50 loan officers) were conveniently selected and interviewed using structured and unstructured questionnaires. Data collected were analysed using both quantitative and qualitative approaches. The results suggest that the effectiveness of internal control procedures has significant positive effects on the performance of microfinance service providers. Based on the findings, the researcher recommends that effective monitoring of the bank internal control procedures should be adequately executed and enforced by senior management to ensure compliance and effectiveness of internal control procedures on the bank‟s performance. Key Words: Evaluation, Effectiveness, Internal Control Procedures, Performance, microfinance, Rural, Bank
The Impact of Employee Motivation on Organisational Effectiveness: A Case Study of Centenary Rural Development Bank, Nateete and Rubaga Branches.
(Uganda Martyrs University, 2011) Twongyeirwe, Elizabeth
TWONGYEIRWE ELIZABETH (2011-M102-20089) The Impact of Employee Motivation on Organisational Effectiveness: A Case Study of Centenary Rural Development Bank, Nateete and Rubaga Branches In this research, the researcher analysed the impact of employee motivation on organisational effectiveness and in particular, in Centenary Rural Development Bank (CRDB) branches in Rubaga division (Nateete and Rubaga branches). For a company to survive, it must have a motivated workforce because employees are the key driving resource of any organisation. Therefore, managers need to focus on the key intrinsic motivational factors, that is, empowerment and recognition in order to achieve this. The main purpose of this study was to assess the impact of employee motivation on organisational effectiveness with specific objectives of analysing the value of empowerment and recognition on employee motivation and their relationship to organisational effectiveness. The study was conducted from CRDB Nateete and Rubaga branches which are located in Kampala District, Rubaga municipality covering a period of five financial years, 2007-2012. It was hoped that the study will enable policy makers and other managers to address issues of poor employee motivation through recognition and empowerment for their organisational effectiveness to avoid the costs that come from a de-motivated workforce. Key words: Motivation, Employee, Effectiveness, Bank
The Influence of Human Resource Planning on the Performance of an Organisation: A Case Study of Stanbic Bank Uganda Limited.
(Uganda Martyrs University, 2007) Sempa, Sheila, Caroline
SEMPA SHEILA CAROLINE (2007-M102-20061) The Influence of Human Resource Planning on the Performance of an Organisation: A Case Study of Stanbic Bank Uganda Limited The main aim of the study was to investigate the extent to which human resource planning influences the performance of Stanbic Bank Uganda Limited. The researcher specifically wanted to discover what human resource planning strategy is used by the bank; to establish the extent to which and how human resource planning affects asset turnover, level of sales and customer turnover; and to identify areas for reinforcing the current human resource planning methods. The sampling procedure was a combination of random and non-random. The methods for data collection were both primary and secondary in nature varying from qualitative to quantitative research methods to investigate the influence of human resource planning on the performance of the selected branches of Stanbic Bank in Uganda. The data collected were coded and cross checked to ensure consistency and accuracy, and analysed using the Statistical Package for the Social Sciences (SPSS). The researcher found out that proper human resource planning plays a vital role in extracting, distributing and allocating resources. It was found out that as a primary component of management, human resource planning helps propel organisations towards the achievement of goals and constant monitoring of departmental activities. The study also revealed that Stanbic Bank has a well-educated workforce, but human resource planning is poorly done, leading to poor work performance due to lack of interest to perform and non-commitment of the workforce amongst others. This in turn led to high employee turnover, low customer retention, low asset turnover, low level of sales, and downward trends in profitability of the bank and under utilisation of resources. It was concluded that the poor human resource planning strategies carried out by the bank result into poor goal attainment, far below the expectations of the bank. The researcher recommended that banks should improve their human resource planning and performance by ensuring that the strategy is free from bias, error and fraud, organise training workshops and seminars to sensitise employees, improve reward systems and develop a more organised culture. These will generally improve on the performance of banks by meeting all the set objectives. Key words: Human, Resource, Planning, Performance, Organisation, Bank, Stanbic
Leadership Styles and Employee Performance in the Uganda Banking Industry. A Case Study of Stanbic Bank and Centenary Bank Kampala District.
(Uganda Martyrs University, 2011) Nanziri, Maria
NANZIRI MARIA (2011-M102-20075) Leadership Styles and Employee Performance in the Uganda Banking Industry. A Case Study of Stanbic Bank and Centenary Bank Kampala District The need to develop better leadership styles is becoming increasingly important in all organisations. The purpose of this research is to ascertain if there is a correlation between the supervisor’s leadership style and the employees‟ performance, particularly in the banking industry (a case study of Stanbic Bank and Centenary Bank in Kampala District). This research reviews two recent and widely utilised leadership styles: Democratic and Autocratic leadership styles and also other leadership styles; laissez faire, transactional, and transformational leadership styles. There is a lack of total agreement in the reviewed literature as to the best leadership style to be used in banking sectors, but Autocratic leadership style appears to be more effective than the other leadership styles. The transformational theory is considered by many to be an improvement on the transactional theory of leadership. There appears to be an ever-increasing number of studies supporting the benefits of all the leadership styles especially democratic and autocratic leadership styles. In today’s ever-changing climate, there are some researchers whose findings suggest the optimal leadership style may be a democratic style or any of transactional and transformational leadership styles. The study was guided by research case studies because of various traits of the leaders in the selected branches of Centenary bank and Stanbic Bank. The researcher opted for simple random sampling of respondents from the selected branches of Centenary Bank and Stanbic Bank to ensure that those employees found at their workplaces were the ones used for this particular study. This design was quantitative because it helped ensure that the data collected was critical for analysis and descriptive interpretation. The researcher used a sample of 144 respondents drawn from a population of 286 permanent employees in the six selected branches. Determination of appropriate samples was made with reference to assertions made by Amin (2005) who (by help of kregcie and Morgan (1970)), suggests the use of a sample table to determine which equivalent sample would ensure representation. Primary data were obtained from respondents at the selected different branches of Stanbic and Centenary Banks and the sampled ones include: Stanbic bank branches along Wilson Road, Nateete and Ntinda town. Centenary Bank branches sampled included Namirembe Road, Kabalagala and Nateete Branch by use of the questionnaires and interview manuals. Secondary data collection explored methods supplementary to the above method where data were obtained from books, research made by scholars, journals and related bank records (obtained from heads of various departments), dissertations, text books, the internet and other materials (such as journals, newspapers) as found useful to the study. The data analysis was conducted on respondents‟ data in two perspectives: Descriptive data analysis and inferential data analysis. The researcher used Pearson‟s correlation co-efficient calculation after the data were aggregated to turn categorical data to numerical representation that required numerical methods. Data collected and presented confirmed that in the selected banks, autocratic leadership style was the most applied. The responses to the traits symbolising autocratic leadership styles got the highest percentages verses Laissez faire leadership, transformational and transactional leadership styles. Findings from the correlation analysis (table 4.8 and 4.9) also revealed that there is a positive correlation between Leadership styles and employee commitment which is significant at 0.01 level (r = 0.733, p≤0.01). Directive leadership has been described as autocratic, task-oriented, and persuasive and manipulative (Bass 1981). Therefore, the study concludes that Leadership Styles positively affect employee performance. However, leadership styles have a greater impact on employee commitment followed by employee motivation and employee job satisfaction respectively. Key words: Leadership, Employee, Performance, Bank
Loan Management Procedures and Bank Performance: A Case Study of East African Development Bank.
(Uganda Martyrs University, 2009) Mutahunga, Vincent
MUTAHUNGA VINCENT (2009-M101-1005) Loan Management Procedures and Bank Performance: A Case Study of East African Development Bank This study examined the challenges of loan management and proposed strategies for improving loan management in East African Development Bank (EADB) for better performance. The objectives of the study include; examining the challenges of loan management in EADB, examining loan management processes in EADB, and proposing strategies for improving loan management in EADB. The study adopted a cross sectional study design and descriptive analysis was used to analyse the primary data. Primary data were collected using a questionnaire from 60 people (30 customers and 30 staff) purposively selected from a sample size of 92. This data was then analysed using the Statistical Package for the Social Sciences (SPSS) and Excel. Similarly, secondary data were collected from existing reports like annual reports and management reports, and analysis was done using SPSS. The findings showed that the poor performance of EADB is due to a non-robust Management Information System (MIS) used by EADB, which is not adequate to provide relevant information to the targeted customers. The findings also indicate that the MIS was not running to the expectations of the users and this affects the Bank’s ability to provide timely and accurate information on the loans. The study concludes that the inability to obtain timely and adequate information about interest rates and product availability causes information asymmetry which in turn affects effective loan management in EADB. The study recommends that the EADB acquires a robust MIS, to step up supervision of loans; improve on risk management and engage in effective marketing of the bank’s products to potential borrowers. Key words: Loan, Bank, Management, Procedure, Performance
Organisational Systems Impact on Employee Performance: A Case Study of Eco Bank Uganda Limited.
(Uganda Martyrs University, 2011) Kizza, Flavia
KIZZA FLAVIA (2011-M102-20041) Organisational Systems Impact on Employee Performance: A Case Study of Eco Bank Uganda Limited The aim of the study was to analyse the effect of performance appraisals, recruitment and selection, compensation and rewards on employee performance in Eco Bank Uganda. The researcher developed a conceptual framework which illustrates how employees perceive organisational systems and how this impact on employee performance. The objectives of the study included establishing the effects of performance appraisals on employee performance, recruitment and selection on employee performance and also establishing the impact of recruitment and selection on employee performance A cross-sectional survey design was used for the study and a sample size of 100 respondents was selected using the stratified random sampling strategy. Questionnaires covering various aspects of organisational systems were administered to respondents in various departments and results were analysed using the Statistical Package for the Social Sciences (SPSS) computer package. Results from the research reveal significant correlation coefficients between the research variables (Performance appraisal, recruitment and selection, compensation and rewards) and employee performance. Basing on the research findings, it can be concluded that there is need for Eco Bank top management to address the inadequacy in the performance appraisal process, recruitment and selection process, compensation and reward system in order to enhance employee performance in the organization. Key words: Performance, employee, Bank
Risk Management and Risk Performance in the Banking Industry: A Case Study of Bank of Uganda, Kampala.
(Uganda Martyrs University, 2011) Kakuhikire, Christopher
KAKUHIKIRE CHRISTOPHER (2011-M102-20033) Risk Management and Risk Performance in the Banking Industry: A Case Study of Bank of Uganda, Kampala The purpose of this study was to examine the relationship between risk management and risk performance in the Banking Industry. The drive for the research arose from the fact that most organisations are allocating more resources to risk management which should ideally lead to high risk performance but more incidences continue to be reported. Risk management was conceptualised into risk organisation and governance, internal audit support and policy environment. Risk performance was conceptualised into asset protection, profitability, process quality, technology stability, client satisfaction, employee satisfaction, ethical quality, and litigation exposure. The objectives of the study were to establish the effect of risk organisation and governance on risk performance; to evaluate the effect of internal audit on risk performance; and to establish the effect of policy environment on risk performance. A structured questionnaire was designed on a five-point Likert scale and distributed to 285 respondents that were selected from a target population of 1,017 using stratified random sampling. Key informant interviews and document reviews were also conducted. Quantitative data were analysed by generating descriptive statistics and by running correlation and regression tests on the study variables using the Statistical Package for the Social Sciences (SPSS). The content analysis technique was used to analyse qualitative data. The research findings indicate that there is a significant positive relationship between risk management and risk performance. Overall, the independent variables (Risk Organisation and Governance, Internal audit Support and Policy Environment) account for 42.3% of the variations in the dependent variable (Risk Performance). The findings also indicate that risk organisation and governance is the strongest predictor of risk performance (55.2%), followed by internal audit support (23.1%). These variables influence risk performance positively. Policy environment influences risk performance negatively by 6.8%. The researcher recommends that organisations in general and Bank of Uganda in particular, should devise strategies of managing the policy environment to circumvent its adverse effects while strengthening risk governance and internal audit functions. Also, further research should be carried out to establish the factors which account for the 57.7% of the variations in the dependent variable that were not captured in the study. Key words: Management, Performance, Risk, Banking, Bank
The Role of Centenary Bank Microfinance Loans in Alleviating Poverty in Mbale District: A Case Study of Busano and Wanale Sub-counties.
(Uganda Martyrs University, 2011) Mujuni, Chani Nicholas
MUJUNI CHANI NICHOLAS (2011-M104-40035) The Role of Centenary Bank Microfinance Loans in Alleviating Poverty in Mbale District: A Case Study of Busano and Wanale Sub-counties This study was to assess the role of Centenary Bank microfinance loans in alleviating poverty in Mbale District using Busano and Wanale Sub-Counties as case studies. The objectives of the study were to examine the loan characteristics offered by Centenary Bank and how they alleviate poverty in Busano and Wanale Sub-Counties, Mbale District; to assess the contribution of microfinance towards alleviating poverty in Busano and Wanale Sub-Counties; and to assess the relationship between Micro finance loans and poverty alleviation. This study used a case study design where both quantitative and qualitative approaches were applied. The respondents were randomly selected after systematically sampling from among the clients and purposely for staff members. Staff of Centenary Bank was purposively selected since they were few. The quality of instruments was ensured by measuring the validity and reliability of the instruments. After data was collected, it was coded, edited, interpreted and presented using graphs, charts and tables in computer programmes like the Statistical Package for the Social Sciences (SPSS) and Microsoft excel. According to the research findings, respondents believed that loan periods offered to them did not support their efforts to improve their incomes and investments. It was revealed that Centenary Bank as a microfinance/commercial Bank over charges its clients for financial services especially credit. Respondents revealed that they were having low cash flow potentials which would not enable them to qualify for bigger loans. Thus, 77.2 percent were generally in disagreement with the assertion that loan sizes offered by Centenary microcredit extension system improved their income. This implies that Centenary bank has not provided relatively appropriate loan sizes to the people of Wanale and Busano Sub-counties. Through interviews with some clients and staff, it was revealed that the loan periods given did not eradicate poverty as they were not supporting business growth as most clients‟ businesses were found to be small and incomes could not meet their expenses like education, medical, feeding and acquisition of valuable assets. Clients were not able to easily pay back the loans offered to them by Centenary Bank. It has been revealed that lack of savings and capital makes it difficult for many poor people to undertake productive employment generating activities. There is a strong positive relationship between Centenary bank Microfinance loans and poverty alleviation in Mbale as revealed by Pearson correlation coefficient as r = 0.808, p = 0.05. The coefficient of determination (r2) being 80.8% means that Centenary bank microfinance loans contributes 80.8% towards poverty alleviation among the communities and the difference of 17.2% is contributed by other factors. The researcher, therefore, recommends that Centenary Bank should always try to provide loans on time to the clients so as to ease the running of their investments. The interest rates charged should also be checked by Centenary bank. The whole Centenary Bank Management should adopt Client Relationship Management so as to keep in touch with the ever-changing customer needs. Loan officers need to be empowered so as to enable them deal with the clients entirely. Key words: Microfinance, Poverty, Bank, Centenary

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