EFFECTIVENESS OF CREDIT REFERENCE BUREAU ON ENHANCING FINANCIAL PERFORMANCE: A CASE EQUITY BANK IN NAKURU COUNTY.

Abstract

All over the world, financial institutions face enormous risks of non-performing loans (NPLs). To overcome this challenge, an institution is required to monitor the behavior of borrowers. Thus, the idea of establishing Credit Reference Bureau (CRB) was conceived in order to enable financial institutions to determine credit worthiness of their borrowers and to reduce the loan default risk ((Epure and Lafuente,2012).