Impact of Efficient Credit Management on Profitability of Commercial Banks in Sierra Leone

Abstract

The main objective of this research was to critically assess the impact of efficient credit management on profitability of commercial banks in Sierra Leone. For this purpose, the Rokel Commercial Bank was selected as a case study. Collection of secondary data was mainly from the five years financial statements of the bank for period 2010 to 2014, and annual reports of the bank. The analysis of the data was quantitatively as well as qualitatively done using ratios analysis and charts. Results show that profitability of commercial banks in Sierra Leone is significantly influenced by the efficiency of credit management. The findings from this study noted the need for banks in Sierra Leone to have in place a good credit policy in order to improve their profitability.