Current Volume 8
The Influence of Loan Portfolio Management on Financial Efficacy of Listed Commercial Banks in Kenya: A Focus on Debt Recuperation Technique
Abstract
This study investigates the influence of loan portfolio management on the financial efficacy of listed commercial banks in Kenya, with a specific focus on debt recuperation techniques. The research employs a quantitative approach, utilizing survey data from senior managers in the credit risk management departments of listed commercial banks. The collected data is analyzed using reliability analysis, factor analysis, descriptive statistics, and multiple regression analysis to assess the relationship between debt recuperation processes and financial efficacy. The findings reveal that loan recovery procedures, legal action, and collateral realization are the most commonly used debt recuperation techniques by listed commercial banks in Kenya. Profitability, shareholder value, and return on equity are identified as the most important measures of financial efficacy. The regression analysis indicates that debt recuperation techniques significantly predict financial efficacy, with loan recovery procedures, legal action, and collateral realization being significant predictors. The study highlights the crucial role of effective debt recuperation processes in enhancing the financial efficacy of listed commercial banks in Kenya. The findings provide valuable insights for bank managers, policymakers, and regulators in developing and implementing robust loan portfolio management strategies to mitigate the risk of loan defaults and improve financial performance. The paper also identifies areas for future research, such as expanding the scope to include other financial institutions and adopting a mixed-methods approach to gain a more comprehensive understanding of debt recuperation processes and financial efficacy.
Keywords
Debt Recuperation Techniques, Loan Portfolio Management, Financial Efficacy
Citations
IRE Journals:
Christine Nasongo , Rashid Fwamba , Tecla Kirwa
"The Influence of Loan Portfolio Management on Financial Efficacy of Listed Commercial Banks in Kenya: A Focus on Debt Recuperation Technique" Iconic Research And Engineering Journals Volume 7 Issue 11 2024 Page 645-649
IEEE:
Christine Nasongo , Rashid Fwamba , Tecla Kirwa
"The Influence of Loan Portfolio Management on Financial Efficacy of Listed Commercial Banks in Kenya: A Focus on Debt Recuperation Technique" Iconic Research And Engineering Journals, 7(11)
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12