The Effects Of Credit Policy On The Performance Of Commercial Banks

Abstract Client credit arises when there is a time lag between the delivery of goods and services and when payment is paid or received from the customer (Kakuru 2000). It's philosophy of lend now and receive payment later. Most commercial Banks offer loans to their customer and expect repayment on a future date (Atim, 1997) There is risk associated with loan extension to clients. There is a likely hood that the loan extended to the bank client may not be recovered as expected and these poses a great risk to most commercial banks (Opio 2003). Therefore commercial banks must gain an acceptable l…