Credit allocation, risk management and loan portfolio performance of MFIs—A case of Ugandan firms

Ssekiziyivu, Bob; Rogers, Margaret; Mayengo, Joseph; Nabeta, Isaac Nkote

doi:10.1080/23311975.2017.1374921

Cited by 9 publications

(5 citation statements)

References 26 publications

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“…Ssekiziyivu et al (2017) investigated the connections between lending activities, risk mitigation, and the efficiency of MFI credit portfolios. The study revealed substantial relationships between credit distribution and loan portfolio efficiency, as well as risk assessment and bank lending performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial management practices, competitive advantage and loan performance of selected microfinance institutions (MFIs) in Ghana

Saeed

2023

Bus Strat Dev

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This study examines how financial management practices and competitive advantage affect loan performance of microfinance institutions (MFIs) in Ghana's Ashanti Region. The research employs a cross‐sectional design with a sample of 85 Ashanti Region MFIs, following Krejcie and Morgan's guidelines for sample selection. Employing a positivist approach with quantitative analysis, primary data comes from closed‐ended questionnaires given to Credit Directors, Credit Department, and Risk Managers, selected randomly from staff lists. Results reveal financial management practices significantly impact loan performance and competitive advantage. However, competitive advantage, under controlled conditions, does not significantly predict loan performance. This highlights financial management's crucial role in shaping loan performance and competitive advantage in MFIs. The study suggests that sustaining growth requires Ghana's Central Bank to enforce adherence to standards for liquidity management. This research adds a fresh perspective to understanding financial management practices, competitive advantage, and loan performance in Sub‐Saharan Africa's MFIs.

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Section: Literature Reviewmentioning

confidence: 99%

Financial management practices, competitive advantage and loan performance of selected microfinance institutions (MFIs) in Ghana

Saeed

2023

Bus Strat Dev

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“…A financial institution's loan portfolio performance shows how well it achieves its lending goals, which adds to the broader organizational aim of maximizing shareholder value (Ssekiziyivu, Mwesigwa & Nkote, 2017). Not just SACCOs but all companies in the lending industry depend on the profitability of their loan portfolios (Fujo & Ali, 2016).…”

Section: Introductionmentioning

confidence: 99%

Influence of Loan Collateral Security and Credit Appraisal on Loan Portfolio Performance of Deposit Taking Saccos in Nairobi City County, Kenya

YUSUF,

MIROGA (PhD),

OTINGA (PhD)

2022

strategicjournals.com

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The key responsibility of the deposit taking Sacco's is to provide credit to consumers or rather members. Furthermore, lending has been and continues to be the backbone of Sacco's business, which is disastrous for emerging economies like Kenya, where capital markets are still underdeveloped. Nonetheless, lending activities have been controversial and a difficult matter given the credit management practices in the competitive environment. The current study endeavored to find out credit management practices and loan portfolio performance of deposit taking SACCOs in Nairobi city county, Kenya. The study looked at the influence of loan collateral security and credit appraisal on loan portfolio performance of deposit taking saccos in nairobi city county, kenya. This study employed a descriptive survey design. The study targeted credit managers of the forty five deposit taking Sacco's in Nairobi County-Kenya. Given that target population was less than 100, a census method. The study used structured questionnaire to collect primary data. The study used descriptive statistics, which included the use of frequencies, means, and standard deviation. In addition, multiple regression assumptions, model fit, ANOVA, and coefficients were used in the analysis. Credit management practices significantly influence loan portfolio performance among Deposit Taking Saccos in Nairobi. Therefore, this study recommended that credit committees of deposit taking Sacco's should always seek to review some policies such legal procedure and employee skill development in order to maximize profits. The study recommended, DTSs should craft viable and customized collateral security measures meant to reduce loan delinquency ratios while at the same time ensuring DTS's reputation and market share. The study recommended that DTS should establish appropriate credit appraisal methods to offer guidance in the issuance of credit.

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“…Second, we contribute to the literature on default behavior in Islamic peer to peer lending. Although there is only one study related to Islamic peer to peer lending in Indonesia (Wimboh et al, 2020), majority of previous research focus on Microfinance Institutions (Ssekiziyivu et al, 2017;Worokinasih & Potipiroon, 2019), agricultural credit corporations (Ewuola & Williams, 1995); conventional peer to peer lending companies (Croux et al, 2020;Chen et al, 2019;Lin & Viswanathan, 2015), and Islamic banking and conventional banking (Bekele et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

The Default in Islamic Peer to Peer Lending: An Application of the General Strain Theory

Nurfadilah,

Nurhaida,

Samidi

2022

JIMF

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While the Islamic peer to peer (P2P) lending is useful especially during the present Covid-19 Pandemic, its default risk remains high. In this study, we apply the extended general strain theory to investigate borrowers’ default intention on the Islamic P2P lending during the pandemic period. Using the SEM-PLS method to analyse data gathered from a survey, we find economic pressure and socialization difficulty to be significant in increasing negative affects (life dissatisfaction, perceived unfairness, and inferiority feeling) and hence indirectly affecting the willingness to repay. Further, we find that socialization difficulty does not seem to have direct influences on default intention. Finally, moral norms appear to be a significant moderating factor in the framework. These should contribute to a better scoring system of the Islamic P2P lending.

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Credit allocation, risk management and loan portfolio performance of MFIs—A case of Ugandan firms

Cited by 9 publications

References 26 publications

Financial management practices, competitive advantage and loan performance of selected microfinance institutions (MFIs) in Ghana

Financial management practices, competitive advantage and loan performance of selected microfinance institutions (MFIs) in Ghana

Influence of Loan Collateral Security and Credit Appraisal on Loan Portfolio Performance of Deposit Taking Saccos in Nairobi City County, Kenya

The Default in Islamic Peer to Peer Lending: An Application of the General Strain Theory

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