Abstract
Purpose: The purpose of this study was to establish examine the relationship between credit allocation, risk management and loan portfolio performance of MFIs in Uganda. Design/methodology/approach...
Highlights
Loan portfolio performance continues to attract attention of scholars and policy-makers due to the long reputable need for credible Microfinance institutions (MFIs)
This implied that higher levels of credit Allocation through collateral requirement, amount applied for, and amount approved are associated with risk Management in regard to assessment, control, prioritization, and design procedures
Results further showed a positive significant relationship between credit allocation and loan portfolio performance (r = 0.395, p < 0.01). This implied that higher levels of credit allocation through collateral requirement, amount applied for, and amount approved are associated with loan portfolio performance in regard to arrear rates, portfolio at risk, and repayment Rates
Summary
Loan portfolio performance continues to attract attention of scholars and policy-makers due to the long reputable need for credible Microfinance institutions (MFIs). Some empirical evidence has shown that in most developing economies, MFIs have brought millions of citizens into cohesive financial institutions which are succeeding very well in providing financial services to its members for improving their standard of living (Collier, Katchova, & Skees, 2011; Kumar & Golait, 2009; Moti et al, 2012). In continuing with this service, Biekpe and Kiweu (2009) point out that loan portfolio performance of MFIs is critical. Loan portfolios are the major asset of MFIs and various studies have been undertaken as regards to, for example, loan portfolio performance (González-Vega, 2003; Kropp & Katchova, 2011; Qinlan & Izumida, 2013)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
