Analysing the Consequences of Credit Management Practice and Performance of PNB Bank

COMMERCE

Credit management is one of the most critical functions in every company, regardless of the nature of its business, and it cannot be ignored. In order for a financial institution to remain stable and profitable, good credit management is essential, and a decline in credit quality is the most common reason of bad financial performance. Lending money and not receiving it back is the most significant risk for a bank, as it is for any other financial organisation. An investigation of PNB's performance was based on credit management methods. Purposive sampling was employed to acquire data from thirty (30) respondents, which was the sample size. Statistical methods such as frequency, percentage, weighted mean score, and multiple regression were utilised to examine the data. The findings showed that PNB bank's financial performance benefits greatly from sound credit management methods. According to the findings, PNB bank's financial performance is heavily influenced by factors such as customer satisfaction, credit risk management, and collection policies.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.