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Effects of Loan Management on Financial Performance of I&M Bank, Rwanda

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  • Emilienne Nsomandera Kayumba

    (Business Administration, Accounting and Finance Department, University of Kigali)

Abstract

Managing loan successfully has always been a challenge for bankers: Lend funds or not lend funds to clients. This paper examined the effects of loan management on financial performance of I&M Bank, Rwanda between 2018 and 2022. The specific goal of the study was to ascertain the effects of credit risk assessment practices on financial performance, the effect of loan monitoring procedures and loan recovery strategies on financial performance of the bank. The developed theories of loan pricing theory, modern portfolio theory and agency theory served as the foundation stone for this investigation. These theories were tested by descriptive statistics of mean, standard deviation coupled with multiple regression analysis from the questionnaire as the instrument and return on assets document. The results show that, credit risk assessment practices regressed at β1 = 0.640 with a value of p

Suggested Citation

  • Emilienne Nsomandera Kayumba, 2024. "Effects of Loan Management on Financial Performance of I&M Bank, Rwanda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 1105-1130, May.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:5:p:1105-1130
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    References listed on IDEAS

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    1. Moinak Maiti & Darko Vuković, 2020. "Role of human assets in measuring firm performance and its implication for firm valuation," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-27, December.
    2. Florian Manz, 2019. "Determinants of non-performing loans: What do we know? A systematic review and avenues for future research," Management Review Quarterly, Springer, vol. 69(4), pages 351-389, November.
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