| dc.description.abstract | The banking sector is a key source of funding for most businesses. Improved loans portfolio
management leads to high performance in functions and activities of an organization. It has an
effect on total economy of the country and activities of all organizations. Commercial banks
use various avenues to generate their income. Loans disbursed to customer are among many
other avenues that are used to generate revenue. However, not all loans disbursed are serviced
by debtors. Defaulted loans are on the increase in most Financial Institutions and this causes the
banks not to meet their obligation of wealthy maximization. The study therefore sought to
investigate factors influencing Loans Portfolio Performance in Commercial Banks of Kenya.
Specific objectives were; to establish influence of Credit Management, to determine the
influence of Unsecured Loans, to evaluate the effect of Repayment Characteristics and finally to
analyze the influence of Technological advancement on loans Portfolio Performance of
Commercial Banks in Kenya. Descriptive research design was used. Data collection wassought
from Commercial Banks Headquarters in Nairobi. The study was based on census approach as
it focused on all the commercial banks listed on Nairobi Security Exchange (NSE),Kenya. For
each commercial bank listed, 5 respondents were sought and this provided 55 respondents. The
study employed both secondary and primary data. Instruments used to collect data were
questionnaires, financial reports of Central Bank of Kenya website and Kenya Bankers
Association journals. The analysis of tabulated data employed descriptive statistics correlation
and regression with the use of Statistical Package for Social Science (SPSS). The conclusion
from the findings indicates that employing proper Credit Management has affirmative and
considerable influence on Loans Portfolio Performance of Commercial Banks in Kenya.
Unsecured Loans has a significant and positive impact on Loans Portfolio Performance of
Commercial Banks in Kenya. Further it was revealed that employing proper evaluation of
Repayment Characteristics has significant and positive influence on Loans Portfolio
Performance of Commercial Banks in Kenya and that Technological Advancement has
significant and positive influence on Loans Portfolio Performance of Commercial Banks in
Kenya. Recommendation of the study is that commercial banks should ensure they adopt sound
Polices review, carry out proper client functioning credit management department. Further it is
recommended that commercial banks should engage more feasible loan security measures
intended to lessen loan delinquency ratios which can subsequently encourage positive customer
performance. | en_US |
