Browsing by Author "NKANSAH, RACHEAL"

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    Non-performing loans and performance of commercial Banks in Ghana: a case of Unibank (gh) ltd.
    (KNUST, 2016-08) NKANSAH, RACHEAL
    Non-performing loans has been identified as one of the major risk facing financial institutions all over the world. The banking sector in Ghana, in particular has been cited as having high non-performing loan levels compared to other countries in SubSaharan African (World Bank Annual report, 2015). Against this backdrop, the study examined non-performing loans and how it relates to the performance of universal banks, using uniBank (Gh.) Ltd as the case study bank. Both primary and secondary data was collected and analyzed to meet the objectives of the study. Descriptive data analysis was adopted to analyze both primary and secondary data. In addition, the responses from the interview was transcribed and presented in a form that meets the objectives of the study. The findings of the study show that even though the nonperforming loan of the bank reduced from 7.6% in 2004 to 0.5% in 2010, it has been rising since 2011. The study further discovered that the main causes of nonperforming loans include customer business failure, inadequate collateral security, poor monitoring mechanisms and inadequate loan appraisal. The study further found that non-performing loans negatively affect the financial performance of Unibank Ghana. The study recommends that the bank must adopt and adhere to effective credit granting standards in order to minimize the level of non-performing loans.