Browsing by Author "Muhidin, R.S. Ally"

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    An assessment of factors leading to fungibility of credit and its impact on microfinance loan delinquency: the case of the national microfinance bank limited
    (University of Dar es Salaam, 2006) Muhidin, R.S. Ally
    The main objective of this study was to assess factors leading to the fungbility of credit and its impacts on loan repayment in the National Microfinance Bank Limited. Fungibility is said to have significant contribution on the performance and quality of loan portfolios of the commercial banks. The total of 11 respondents from four National Microfinance Bank branches in Dar es Salaam was sampled. Both qualitative and quantitative methods were used in data analysis. SPSS and Microsoft Excel programs aided data analysis data analysis. Simple linear regression model s were used to test relationships that the researcher was interested to find out. It was found that factors leading to fungibility of credit in the National Microfinance Bank Limited included clients’ strategies of managing shocks, propensity to acquisition of fixed assets, high cost of credit, short product line and information asymmetry among others. At 5% level of significance it was concluded that there is significant statistical relationship between fungbility of credit and loan delinquency in the Bank. It was also concluded that Bank’s policy on fungibility of credit has positive relationship with frauds, misconduct and dishonest among employees and that it accounted for the greater part of the present delinquency and portfolio performance problem in the bank.