Browsing by Author "Otoo, Samuel Addo"

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    Assessment of the credit risk management practices of Tanoa Capital Point Ltd (TCP)
    (2008-08-16) Otoo, Samuel Addo
    The concept of micro finance has emerged as a potential solution to the financial insecurity of the economically disadvantaged in societies. As at the close of 2004, over 10,000 MFIs have reached more than 92million people worldwide of which only 7million came from Africa (Dunford, 1998; Latifee et. al, 2008). Over 1.2 billion people in the world today live on less than one US dollar a day (Gonzalez-Vega, 1998). As programmes mature, debates within and outside the industry have moved beyond the question of scale and outreach to the question of whether microfinance can be profitable, reduce poverty and contribute to the socio economic development of the people. The overall objective of this study was to assess the credit risk management practices of Tanoa Capital Point to determine whether it conforms to standard best practice in the industry. Descriptive survey methodology was used. The sampling technique used was cluster, systematic and simple random sampling. The findings show that clients default due mainly to asymmetric information, crises in their business or family lives, favoritism from credit officers, loan size been to large compare to the size of their businesses or when client want to test the ability of the MFI to collect the loan when the time is due. The study recommends that to reduce credit risk loans should be granted based on tools such as repayment capacity (repayment amount as a ratio of sales turnover), debt to equity ratio, proper character test and evaluation: the use of solidarity groups, joint and several guarantees with each other pledging some assets as collateral to the entire group are use. Training should be organized for both the credit officers and the client with the appropriate incentive schemes to much with. Also the loans should be disbursed on time to improve yield, profitability and prompt repayment. IN addition interest rate and other charges should be reduced to make the loan more attractive and the business of the client profitable.
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    “Investigating the impact of the savings behaviour of customers on bank’s performance – case: Yaa Asantewaa Rural Bank”
    (2016-11-04) Otoo, Samuel Addo
    The principal objective of this study was to investigate the saving habit of customers of Yaa Asantewaa Rural Bank (YARB) and how such attitude influence the performance of the bank. To accomplish this aim and per the nature of contributing factors of saving, both primary and a thirty-six month secondary data (covering 2013 – 2015) were used. The multinomial logistic regression model was adopted in analysing the primary data collected and the secondary data were analysed using the Ordinary Least Squares model. The results from the multiple linear regression estimation revealed that interest on deposits and the prevailing rate of inflation in the Ghanaian economy have significant deterministic effect on deposit growth at YARB. Also, the multinomial logistic regression model showed that customers’ attitude toward risk, number of people who financially depend on customers, and their level of income can influenced their saving culture very much. However, age distribution of customers and their educational background (but those with vocational education) were found to have no influence on saving behaviour of customers of the bank. It was also revealed that a good number of customers contacted were ignorant about the existence of interest earned on their deposits. In general, the growth rate of savings at the bank assumed a downward trend for the period understudied. The study then recommends awareness creation on deposit rate, expansion of credit facility to clients, and provision of incentive packages besides interest paid on deposits as measures to be put in place to improve the saving culture of customers at YARB.