ASSESSMENT OF LOAN RECOVERY PERFORMANCE IN CONSTRUCTION AND BUSINESS BANK (CBB)

Abstract

The objective of the study was to analyze the progress and achievement of Loan recovery and how loans were recovered in CBB. And establish the relationship between loan recovery and Bank performance. The research methodology adopted both descriptive and analytical research design based on both open ended and close ended-structured questionnaires to gain an in-depth understanding of loan recovery performance. A sample size of 136 respondents was used and Simple random sampling method was adopted for the study. Data was collected from both primary with the help of questionnaires and secondary data from different published and unpublished reports and CBB rules and regulations as well. The result of the study revealed, that varies types of collateral that used to serve credit applicants, the credit follow up support with technology on the other hand ridged credit police, complicated loan process, lack closed follow up, lack of loan advisory service before and after the loan and pure loan recovery performance were among the identified factors .The researcher recommends that the bank should provide Loan advisory service before and after the loan, diversified loan types and the Bank developed strong credit assessment and follow up to reduce the amount of NPL and the Bank should have to ensure that collateral is continues to be enforceable and realizable.