An Investigation of the challenges relating to credit granting and recovery. A case of Steward bank (Zimbabwe)

Author

Marufu, Tatenda

Title

An Investigation of the challenges relating to credit granting and recovery. A case of Steward bank (Zimbabwe)

Abstract

This study investigated the challenges faced by Steward Bank in credit granting and recovery. The study collected data from the bank's employees in Harare focusing on the credit management practices of the bank in areas of problems in loan recovery, effects of loan defaults, credit management practice of the bank and measures to lower loan defaults in banks. Fifty bank employees participated in the questionnaire survey, and the results were collected to determine how each thought about the bank's credit-granting and debt-recovery policies in regard to the above mentioned procedures. To measure the study's variables, closed-ended questions were employed in a survey format. Using SPSS version 20 and Microsoft Excel version 2016, descriptive statistics, percentages, and frequency were used to evaluate the data. The survey's findings reveal that the majority of bank employees are concerned about the country's hyper-inflationary conditions, the rates on parallel markets, the inadequate credit research used to approve loans, and the equally inadequate follow-up and recovery efforts. The research project concludes with a set of recommendations for commercial banks to enhance their credit granting and recovery practices. These recommendations encompass the development of comprehensive credit policies, investment in staff training and capacity building, and fostering collaboration between banks and regulatory authorities. By addressing these challenges and implementing the proposed solutions, commercial banks can strengthen their credit operations, reduce credit risks, and contribute to a more resilient and sustainable banking sector.

Date

June 2023

Publisher

BUSE

Keywords

Credit granting

Recovery

Challenges

Credit recovery

Supervisor

N/A