The Impact of Savings on Credits: a Case Study of Atwima Kwanwoma Rural Bank (2000-2007)

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During the last years the banking business has come under considerable competitive pressure and bank managers often express concern regarding its savings and credits vis-a-vis other activities. The paper examined the impact of savings on credits of Atwima Kwanwoma rural bank from 2000 to 2007 financial years. The researcher employed both financial and non-financial analysis. The bank charges different rate of interest for various customers on the basis of risk and nature of loan. Also there are eight steps involved in the loan officer determines whether the report accurately describes the borrowing capacity and characteristics of the borrower, loan operation, the recording of the loan, loan servicing and administration and finally the loan officer may receive periodic delinquency information and need to follow on t his with borrowers. Empirical results from estimating the model on 2000 to 2007 data from the bank’s financial statement indicates that total deposit has been increased from 152.65 billion respectively. Also the analysis in the study period indicates that credits have increased from 1,559 billion in 2000 to 110.42 billion in 2007. Descriptive analysis of the findings established that there is a positive relationship between total deposits and credits. This shows that as total deposits increased the amount to lend also increased.
A long essay Submitted to the Department of Accounting and Finance Kwame Nkrumah University of Science and Technology in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration, 2008