The effect of internal controls on credit risk of commercial banks in Ghana
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Date
2021
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Publisher
KNUST
Abstract
Every business or institution needs to have effective internal controls to give the guarantee that with the internal controls in place, the business or institution will be able to achieve the financial and operating goals in addition to complying with the required regulations. The general objective of this study is to ascertain the effect of internal controls on credit risk in commercial banks in Ghana. The population is made up of all commercial banks in Ghana. In all, there are 23 commercial banks currently in Ghana. The study used quota sampling and purposive. The main data collection instrument was a questionnaire that contained structured questions relating to the research objectives. The study found out that the internal controls covering credit risk in the commercial banks were very strong. The four elements assessed where: control environment, control activities, risk assessment and information and communication. Again, there was a reasonable relationship between credit risk and risk assessment. The study recommended that every staff of financial establishment ought to undergo an annual training on fraud and compliance issues. This is very important because the banking sector and its environment is very dynamic and so it was necessary for employees of financial establishment to be abreast with current issues bothering on fraud and compliance in the banking sector
Description
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfilment of the requirements for the degree of msc. Accounting and finance