Browsing by Author "Opoku Adusei, Joseph"

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    A study of the liquidity risk management practices at Kumawuman Rural Bank
    (AUGUST, 2015) Opoku Adusei, Joseph
    Banks raise deposits by accepting money and other deposits from individuals and institutions in order to operate. The extent of the deposits mobilised is normally influenced by the extent of public trust in the banks to protect their money safely and give it back to them on demand. The business of banking is carried out on the principle of trust. Thus liquidity risk management plays an integral role in the performance and survival of rural and community banks (RCBs). The high growth potential of RCBs may be brought to a catastrophic halt if a sound and robust liquidity risk management regime is not enforced. This study sought to examine the current liquidity risk management practices and the organisational structure in relation to managing liquidity risk in Ghanaian rural banks, specifically at Kumawuman Rural Bank Ltd. The study employed interview guide and questionnaire to collect both primary and secondary data and analyzed through Statistical Package for Social Sciences (SPSS). The study revealed that the bank adopts a variety of strategies including a well constituted organizational structure to manage risks and continuously monitoring its liquidity position before giving out credit facilities. However, the bank’s homegrown liquidity risk management practices are not documented for current and future use in liquidity problem solving. Although the bank has many academically qualified and experienced staff members, the study recommends that more should be done to provide training programmes on liquidity management and timely information flow within the organization for critical staff such as branch managers, accountants and other selected staff members. Despite this reservation, it is noteworthy to point out the enviable compliance attitude of the bank with respect to regulatory policies.