Performance assessment of micro-financing in First Allied Savings & Loans Limited (FASL)
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Date
2005-11-03
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Abstract
Micro-finance as an economic development tool has evolved as an approach to benefit low income sector in both rural and urban centres. It refers to the provision of financial and sometimes social intermediation services to the low-income clients. Suppliers of micro-finance can be as formal, semi-formal and informal financial institution depending upon the form of regulation. The formal financial institution (Banks and Non-bank Financial Institutions (NBFIs) are regulated and supervised by the Bank of Ghana defined from the PNDC Law 225 and PNDC Law 328 for banks and NBFIs respectively.
The general objective of this work was to review the performance of First Allied Savings & Loans Limited (FASL) as micro finance institution and its ability at promoting a more facilitating environment with regards to the development of micro, small and medium term enterprises in Ghana. Further recommendations were made to correct various impediments of micro-finance institutions so as to enhance the growth of poverty alleviation in Ghana.
The framework governing the micro-finance industry to ensure that the Micro Finance Institutions have sound portfolio performance, low delinquency ratios, high diversification to reduce risk, ensure safety of deposits and low liquidity risk have been reviewed.
The performance of FASL since its establishment such as detail financial performance, deposit mobilization analysis, portfolio quality description and social economic impact assessment in terms of contribution to employment, social responsibility contributions as well as an extensive description and detail analysis of FASL as an institution, its operational and the staffing position have been assessed and clearly explained.
Description
A thesis presented to the Board of the of Postgraduate Studies, in partial fulfilment of the requirements for the award of Masters in Business Administration (MBA), 2005