Influence of Credit Risk of Financial Performance of Deposit Taking Savings And Credit Co-Operatives in Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 1
Abstract
The purpose of this study was to empirically examine the influence of credit risk on financial performance of deposit taking savings and credit co-operatives in Kenya. The econometrics methods used in the study involves assessing the influence of the selected independent variables; Loan Delinquency and Loan Loss Provisions on financial performance of DT Saccos in Kenya. The target population for this study was 164 deposit taking Sacco societies licensed to undertake deposit-taking Sacco business in Kenya for the financial year ending December 2016. The study adopted census and considered all the DT Saccos for study. Secondary data was collected from 135 deposit taking Sacco’s audited financial statement which represented 82.32% success rate. Data was analyzed using both descriptive and inferential statistics. The result indicates credit risk has a negative and significant influence on financial performance. The Management of the DT Saccos need to be cautious in setting up a clear credit policy that will not negatively affects profitability and also they need to know how credit policy affects the operation of their DT Saccos to ensure judicious utilization of deposits and maximization of profit.
Authors and Affiliations
Moses Ochieng Gweyi, Dr. Tobias Olweny, Prof. Margaret Oloko
Keywords
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- EP ID EP409458
- DOI 10.9790/487X-2001027691.
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