CREDIT RISK MONITORING AND FINANCIAL PERFORMANCE OF SACCOS

Abstract

ABSTRACT : The study determined the effect of credit risk monitoring on financial performance SACCOs in Ibanda municipality. The study anchored of an objective; to determine the effect of credit risk monitoring on the financial performance of SACCOs in Ibanda municipality. The researcher used a cross sectional descriptive survey design with quantitative approaches of data collection and analysis. The study population comprised of employees of SACCOs in Ibanda municipality. In this study credit supervisors and loans officers were the key respondents. A sample of 88 respondents was used determined with the help of Yamane (1967) formula. Data was majorly collected using a questionnaire as a tool for quantitative data collection and analysis was done used a data management tool SPSS (Version 23) where descriptive and correlational statistics were derived to find out the relationship between the two variables under the study. The study results indicated a moderate significant positive relationship between credit risk monitoring and financial performance of SACCOs (r = 0.473**, p<.01). The study recommended that there is a need for SACCOs to put in place credit risk strategy which can be followed to ensure that finances are not lost in courtesy of credit risk monitoring