THE IMPACT OF CREDIT MANAGEMENT ON BANKS’ PROFITABILITY IN SIERRA LEONE: A CASE OF KAMAKWIE COMMUNITY BANK, KARENE DISTRICT

Abstract

The study's primary aim, to assess the impact of credit management on banks’ profitability, is of significant interest and importance to the banking industry. This study uses Kamakwie Community Bank as a case study for management on banks’ profitability, using Kamakwie in this crucial aspect of banking. The study is exploratory, and a mixed approach was used to explore primary and secondary data sources. A well-designed questionnaire was administered to 12 bank staff members, who were surveyed using purposive sampling, a method where participants are selected based on specific characteristics relevant to the research. The data collected was analyzed using simple statistical packages like Excel and frequency counts, and the results were presented in charts. The study's findings, which revealed that credit management can significantly enhance a bank's liquidity position, thereby increasing its profitability, are paramount to the banking industry. The paper recommends that potential borrowers be adequately sensitized to the Bank's lending policies and appropriately screened before being granted loans to mitigate delinquency and loan default.