Browsing by Author "Nabeta, Isaac Nkote"

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    Credit allocation, risk management and loan portfolio performance of MFIs—A case of Ugandan firms
    (Cogent Business & Management, 2017) Ssekiziyivu, Bob; Mwesigwa, Rogers; Mayengo, Joseph; Nabeta, Isaac Nkote
    The purpose of this study was to establish examine the relationship between credit allocation, risk management and loan portfolio performance of MFIs in Uganda. Design/methodology/approach: A cross-sectional research design was adopted which involved descriptive, correlation and regression approaches. Data were analysed through SPSS. Simple random sampling was used to select a sample of 40 MFIs from the population of 45 in Kampala and Wakiso districts. Findings: Results indicated that credit allocation and risk management had a significant relationship with loan portfolio performance. Results from the regression analysis showed that credit allocation and risk management significantly predicted 23.9% of loan portfolio performance. Practical implications: It was recommended that managers of the MFIs should conduct pre-disbursement trainings through workshops and seminars for all successful loan applicants which would enable them on how to utilize the loan facilities acquired which will eventually reduce on the default rates. Originality/value: This is one of the few studies that focus on credit allocation, risk management and loan portfolio performance of MFIs within the context of Uganda.
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    Social capital: mediator of financial literacy and financial inclusion in rural Uganda
    (Review of International Business and Strategy, 2016) Bongomin, George Okello Candiya; Ntayi, Joseph Mpeera; Munene, John C.; Nabeta, Isaac Nkote
    The purpose of this paper is to examine the mediating role of social capital in financial literacy and financial inclusion relationship in rural Uganda. The major aim is to establish the role of social capital in the relationship between financial literacy and financial inclusion.The paper adopts and uses MedGraph programme (Excel version 3.0), Sobel and Kenny and Baron tests to test the mediation effect of social capital in the relationship between financial literacy and financial inclusion.The results reveals that social capital is a significant mediator in the relationship between financial literacy and financial inclusion of rural poor in Uganda. Financial literacy did not have a direct effect on financial inclusion, but through full mediation of social capital. Existence of social capital into the relationship boosts the relationship between financial literacy and financial inclusion by 61.6 per cent among rural poor households in Uganda. Thus, the finding suggests that with the absence of social capital, financial literacy may fail to enhance the level of financial inclusion among rural poor households in Uganda.arch approach using a questionnaire. However, future research through interview may be of importance. Besides, for the purpose of triangulation, a study involving financial institutions’ staff may be viable. Moreover this study was limited by the fact that it was cross-sectional. Furthermore, a longitudinal study may be useful in future to investigate the mediating impact of social capital spanning over a long period of time.Managers, policymakers and financial inclusion practitioners should advocate and embark on building social capital among rural communities, so as to improve on the level of financialinclusion.While a large body of research has been carried out on financial literacy, this paper is the first to test the mediating role of social capital in the relationship between financial literacy and financial inclusion, especially in rural Uganda. This study generates evidence and contributes to the powerful influence of social capital in enhancing the level of financial inclusion based on financial literacy.