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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8500

Title: Assessing the lending practices of upper amenfi rural bank In Ghana
Authors: Amoah, Anthony Gyabeng
Issue Date: 6-Apr-2016
Abstract: This study assessed the lending practices of Upper Amenfi Rural Bank Limited. A total sample of twenty eight credit officers participated in the study. The study found that, the overall loan policy of the bank did not follow the Bank of Ghana‘s Quota which includes 50% for Agriculture, 30% for Cottage and 20% for Trade and Transport. At upper Amenfi Rural Bank, lending is done based on the following quota; 13.6% for Agriculture, 29.9% for Cottage and 57.8% for Trade and Transport. In order of importance, the following factors determined the lending decisions of Upper Amenfi Rural Bank; collateral, creditworthiness, guarantors, profitability, borrowers repayment history, capacity of the bank to grant the loan, cash flow statement, earnings, character in terms of past loan repayment period, liquidity or working capital, experience in credit utilization and geographical limit. The study also identified the following factors as the determinants of credit default among clients of Upper Amenfi Rural Bank in their order of magnitude: customer business failure, diversion of loans, loans for social purposes, inadequate monitoring, inadequate security, inadequate documentation, inadequate appraisal, staff influence, inadequate credit staff and staff attitude. The study therefore recommended that, in order for Upper Amenfi Rural Bank to reduce the default rate among its clients, there is the need to intensify training programs for loan applicants so as to ensure that credits assessed are properly utilized for business purposes so as to enhance prompt repayment of loans.
Description: A thesis submitted to the department of accounting and finance, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the award of degree of Master of Business Administration (Finance Option), 2015
URI: http://hdl.handle.net/123456789/8500
Appears in Collections:College of Arts and Social Sciences

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