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| Contribution of Credit Risk Management on Financial Performance of Saccos in Rubanda District: Empirical Studies from Hakashenyi Sacco Rubanda Branch Rubanda District.
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Akankwasa Alex, Akakikunda Teddy, Ntirandekura Moses &Matsiko Caroline Murezi
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Abstract:
The purpose of the study was to assess the contribution of credit risk management on financial performance of Saccos in Rubanda district specifically Hakashenyi SACCO Rubanda district. Its aims were to examine the causes of credit risk management, to discover risk management mitigation measures on lending portfolio among Savings and credit cooperatives and to find out the effect of risk management on financial performance of Saccos .The methodology adopted a cross sectional research design Both qualitative and qualitative research designs were used in the collection of data during the study. Data collection instruments included the questionnaire, documentary review and interview guide. The findings revealed that there is there is a strong correlation between Credit risk management and the financial performance at Hakashenyi SACCO Rubanda Branch. The Loans department at Hakashenyi SACCO do not conduct a clear risk assessment exercise which therefore indicates that the high level of Non Performing Loans which is responsible for more losses. The study hence recommends that there is need by the SACCO to conduct technical training for its staff, Monitor and evaluate the Clients in need to find out whether they qualify for the loans and provide investment advice to the customers. This may also be realized by recruiting skilled and competent staff to enable the SACCO achieve its overall goals and objectives.
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