Browsing by Author "AMOFAH, SWEETIE"

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    ASSESSING THE EFFECTS OF INADEQUATE SAVINGS MOBILIZATION ON THE PERFORMANCE OF SAVINGS AND LOANS COMPANIES IN GHANA: A CASE OF MULTI CREDIT SAVINGS AND LOANS LTD
    (August2015) AMOFAH, SWEETIE
    The general objective of the study was to assess the extent to which a decrease in savings mobilization by Multi Credit savings and Loans affects the organization’s shareholders, the profitability of the institution and the general administrative expenses. A questionnaire was used to collect responses from some selected field cashiers, whereas face-to-face interviews were adopted to acquire basic information from key management persons of the institution. The study discovered that, the major clients of the institution are individuals and small and medium enterprises (SMEs). Mobile bankers were found to be the primary means where the institution mobilizes savings from its clients. Further investigations revealed the managerial procedures for the mobilized funds. The study also revealed that, if branch heads do not achieve set targets for mobilization, they lose some allowances. The institution uses profit from its main operations and revenue generated from other sources to finance the organizational costs incurred. This means that if inadequate savings are mobilized, the impacts become severe and turns to affect every province of the organization. The study concluded that shareholders’ have a share in the profit of the institution. So if inadequate savings are mobilized, profit decreases and this affects the investment levels of shareholders negatively. Further investigations also revealed how the company’s reputation dwindles if inadequate savings are mobilized. The researcher discovered that, in worse case scenarios, when low savings are mobilized, salaries and other major expenses like rents and electricity will be financed through deposits made by the institution’s clients. Therefore, recommendations were made to the institution to educate the mobile bankers on the implications of fraudulent acts and on how to educate small scale businesses to manage their businesses so they do not default in their loan repayments. The study was however limited by the geographical expanse of the study area, inadequate financial resources and time constraints also reduced the chances of contacting more respondents.