American Journal of Finance and Business Management <p><strong>American Journal of Finance and Business Management</strong> (AJFBM) is a high quality journal published by GPR Journals. The scopes of AJFBM include, but not limited to, Asset Pricing, Business Environments, Business Negotiations, Business Operations Management, Competition, Corporate Finance, Financial Econometrics, Financial Engineering, Financial Forecasting, Financial Intermediation, Investments, Managerial Decision Making, Risk Management, etc. AJFBM strives to maintain its quality publications through rigorous peer review of Papers. Manuscripts published in AJFBM are available as online publications and can also be availed as hard copies upon authors’ request. Papers can be submitted via email to <a href=""></a> or <a href="">online submission</a>.</p> Global Peer Reviewed Journals en-US American Journal of Finance and Business Management 2958-3837 Effect of Credit Policies on Financial Performance of Commercial Banks in Uganda <p><strong>Aim:</strong> The purpose of this study was to investigate the effect of credit policies on the financial performance of commercial banks in Uganda.</p> <p><strong>Methods:</strong> This research employed a descriptive research design. The target population consisted of 40 credit managers from 20 commercial banks in Uganda. Purposive sampling was used to select the credit managers. Quantitative data was collected using a structured questionnaire and analyzed using SPSS version 26 through correlation and regression analysis. Qualitative data was collected through interviews with the bank managers. Qualitative data was analyzed thematically and presented in a narrative form.</p> <p><strong>Results:</strong> The results revealed a positive and significant relationship between credit policies and financial performance in commercial banks in Uganda. The null hypothesis was rejected, indicating that effective credit policies contribute to improved financial performance.</p> <p><strong>Conclusion</strong>: It was concluded that effective credit risk assessment, strategic credit allocation, an efficient credit monitoring system, the use of technology, a robust credit culture, and employee training and development are key factors influencing the effectiveness of credit policies and bank financial performance.</p> <p><strong>Recommendations:</strong> Banks should design and implement comprehensive training programs that cover all aspects of credit policies, including risk assessment, strategic credit allocation, credit monitoring, and the use of risk assessment software and data analytics tools. These programs should be tailored to employees' roles and responsibilities to ensure maximum relevance and effectiveness. Banks should foster a learning culture within the organization that encourages employees to continuously update their credit management skills and knowledge.</p> Ronald Kato Gerald Irumba Copyright (c) 2024 American Journal of Finance and Business Management 2024-01-08 2024-01-08 3 1 1 17