EFFECT OF LOAN MANAGEMENT ON FINANCIAL PERFORMANCE OF BANKING INSTITUTIONS IN DRC A CASE STUDY OF EQUITY BANK GOMA BRANCH (2018-2022)

Abstract

This study investigating how loan management influences the performance of banking institutions. a case study of Equity bank Goma branch (2018-2022) .aside (i) To evaluate the effectiveness of loans management of Equity bank (ii) To assess the current loan repayment status of Equity bank Goma branch (iii) To analyze the level of performance of Equity bank (iv)To find out the relationship between bank loans management and its financial performance of Equity bank The study population is composed of 20 employees of Equity bank working including managers, here the researcher used universal sampling technique to deal with the respondents to whom loan management is on their responsibility. Financial statements were also analyzed. The study collected information using the following methods: documentary research, but primarily interviews. The information obtained was analyzed using SPSS Version 21 by the researcher. The researcher employed both descriptive and correlational analysis in this approach. The general objective of this research was to find out the effect of loan management on the performance of banking institutions. By using Equity Bank-Goma Branch as a case study aimed to achieve the specific objectives and the findings showed that there is a significant effective linkage between loan management and performance of Equity Bank-Goma Branch. Also, the findings showed that, the bank's performance is positively, reflecting consistent and favorable performance across various dimensions. Furthermore, the findings showed a strong positive relationship between loan management and performance of Equity Bank-Goma Branch The F-statistic (F) in the ANOVA table has a value of 11.835, and its associated significance level (Sig.) is 0.003b. The F-statistic is a measure of the overall significance effect of the predictor variable (Loan management) on the dependent variable (Financial performance). In this context, the low p-value of 0.003b indicates that there is strong statistical evidence to conclude that Loan management significantly affects financial performance. Typically, in statistical analysis, a p-value below the conventional significance level of 0.05 is considered statistically significant. In this case, the management of Equity Bank/Goma Branch should enhance emphasize on customer-based aspirations rather bank based but also include customers views in developing loan policies, repayment process.