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|Title: ||Credit risk management of Ghanaian listed banks|
|Authors: ||Ayog-Nying Apanga, Michelle|
Appiah, Kingsley Opoku
International bank supervision
|Issue Date: ||2015|
|Publisher: ||International Journal of Law and Management|
|Citation: ||Michelle Ayog-Nying Apanga Kingsley Opoku Appiah Joseph Arthur , (2016)," Credit risk management of Ghanaian listed banks ", International Journal of Law and Management, Vol. 58 Iss. 2 pp. 162 - 178; http://dx.doi.org/10.1108/IJLMA-04-2014-0033|
|Abstract: ||Purpose – The study aims to assess credit risk management practices within financial institutions in
Ghana. Specifically, the study compares credit risk management practices of listed banks in Ghana with
Basel II (1999).
Design/methodology/approach – The analysis is based on data gathered from varied sources,
namely, use of questionnaires, analysis of internal credit policies and procedure manuals and
semi-structured interviews and discussions with credit risk managers of the selected banks in May 2007
and October 2014.
Findings – Overall, the credit risk management practices within listed banks in Ghana are in line with
sound practices. The only dissimilarity, however, is the role of the board of directors in defining
acceptable types of loans and maximum maturities for the various types of loans. The listed banks in
Ghana are also exposed to credit risks associated with granting both corporate and small business
commercial loans and the use of collaterals to mitigate their credit risk exposures.
Practical implications – Banks in Ghana should consider developing the skills of all their personnel
and appropriately motivating those involved in the credit risk management processes to ensure that
they carry out this process efficiently.
Originality/value – Research into credit risk management in the banking industry from the
Ghanaian perspective remains scant. This study is, therefore, timely, and its findings are invaluable for
the efficient management of credit risk in the banking industry. This study provides policy
recommendations which will enhance shareholder value and, in this way, contribute to greater stability
in the banking sector in developing countries, in particular.
Keywords Ghana, Basel II, Financial institutions, Banking regulations, Credit risk,
International bank supervision|
|Description: ||An article published by Michelle Ayog-Nying Apanga Kingsley Opoku Appiah Joseph Arthur , (2016)," Credit risk management of Ghanaian listed banks ", International Journal of Law and Management, Vol. 58 Iss. 2 pp. 162 - 178; http://dx.doi.org/10.1108/IJLMA-04-2014-0033|
|Appears in Collections:||College of Arts and Social Sciences|
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