Browsing by Author "Francis, Ampratwum"

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    Bank specific determinants of non-performing loans among selected commercial banks in the Kumasi metropolis
    (August 2015) Francis, Ampratwum
    The main aim of the study is to identify banks determinants of non-performing loans among selected banks in the Kumasi Metropolis (Prudential Bank, Ecobank, Barclays Bank, Standard Charted Bank and Zenith bank). For the purpose of this study a both purposive and convenient sampling technique was used to select 30 respondents. Responses from the respondents were analyzed using the Predictive Analytical Software (PASW) formerly known as Statistical Package for Social Sciences (SPSS). The finding indicated that the high interest rate is the major factor of nonperforming loan factors of selected commercial banks in Kumasi. The study revealed that majority of the workers was in support with the credit assessment and the occurrence of NPL. Simply because; know your customers policy bank leads to a high loan quality and good loan under writing ensures loan performance. Surprisingly, the study discovered that, collateralized loan perform well and helps to protect loan default, at the selected commercial banks in the Kumasi Metropolis. Also few of the workers had the perception that growth in bank size comes growth on NPL and bank great risk appetite is caused for NPL are the reasons for credit size and occurrence of NPL of selected commercial bank in the Kumasi. In sum, Non-performing loans arise as a result of high interest rate of banks, banks great risk appetite, large number of borrowers, poor monitoring/follow up of loans given, the leniency of credit terms, poor risk assessment, and rapidity in growth of loan by banks and poor credit culture/orientation among others. The study recommended that, Banks must initiate or if already in place strengthen their credit or loan policy in order to outline rigorous requirements that have to be met by borrowers before the issuance of loans. Also, Banks must have research department to carry out effective risk assessment in order to give the requisite advice on the issuance of loans to borrowers. Limitations of the study include constrains of time and finance.