Performance appraisal of Garden City Savings & Loans Ltd and First allied Savings & Loans Ltd in Kumasi
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Date
2008-10-21
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Abstract
Despite the increasing number of financial institutions, relative macro-economic stability, liberal financial policies, majority of people in the informal sector, who engage in micro and medium scale vocations continue to crave for effective, reliable, efficient and affordable financial services deliveries. Most formal financial institutions had tended to lend financial services to the rich and affluent in society who use these facilities for expansion and growth of their businesses at the neglect of the majority poorest of poor. It is in line with these developments that microfinance has been recognized as an anti-poverty tool and a wise investment in human capital that the world had resolved to reduce by half, by the year 2015; as the number of people (1.2 billion) live on less than a dollar a day in this world (Annan, 2002). Ghana is no exclusion of this developmental drive. For it had been recognized that microfinance operations rely upon the existence of an enabling environment made up of efficient and adequate infrastructure, sound macro-economic environment and financial stability, as well as greater involvement of civil society. Besides, strategic words banking leadership today are thorough knowledge of socio-economic profiles of target and potential customers driven products and relationship approach to services delivery (Andah, 2005). Again, in response to fast and dynamic changes in the financial sector more MFIs have expanded their clientele catchments’ areas with periodic opening and management of branches of operations. The aim is to keep a competitive pace with their counterparts in the formal banking sector, for profitability, growth and survival.
Yet, existence of Micro Finance Institutions have been constrained with pertinent challenges such as stringent institutional and regulatory frameworks, teething credit and savings mobilization setbacks affecting consumers demand on services/products offered, among others. Premised on the above, MFIs need much attention if they are to perform their pivotal role in reducing poverty in Ghana, which is in line with the UN Millennium Development Goals (MDGs) of halving poverty by the year 2015. These developments prompted the author to undertake this research study that sought, obtained and analyzed data and information throughout the study and proposed some recommendations that would help MFIs to restructure their activities in order to serve relatively better, compete favourably and to remain vibrant. For the private sector to be accomplished as the engine of growth and development, the recognition and implementation of microfinance policies cannot be overemphasized.
Description
A Thesis submitted to the Department of Accounting and Finance,
Kwame Nkrumah University of Science and Technology,in partial fulfillment of the requirements for the award of the degree
of Master of Business Administration (MBA), 2008