Financial Performance Appraisal of Asante Akim Rural Bank from the Year 2003 To 2007.

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The purpose of this study is to look at the financial performance appraisal of the Asante Akyem rural bank from 2003 to 2007. It became necessary that an in-depth study is conducted into the performance of the bank because of the fact that the financial systems across the world, more especially in the United States of America, has been bedeviled with a lot of problems, which puts the profitability of most banks also in question. In an * attempt to review the performance of the Asante Akyem rural bank, the operations of rural banks both in and outside Ghana was looked at. Financial performance in general was exploited to give weight to this research. Again, other pertinent issues in the chain of activities of the banking business as well as financial ratios and their importance were critically examined. The performance of the bank was analysed using data from both electronic and print media including institutional reports, published and unpublished materials as well as an interview of key personnel. Through the analysis of the data it was realized that the bank, in general, achieved growth in its profitability within the study period, with year 2007 being the most outstanding. In spite of this, it was however revealed that the bank would not be able to withstand heavy financial shocks. Issues like poor management and weak internal controls as well as loan repayment default were identified as some of the factors undermining the efficiency of the bank. After analysis and identification of these problems, some recommendations were made. These included the need to embark on an intensive education on the importance of savings, training of staff in business strategy and organizational management and techniques in credit management to reduce risk of default. The bank also needs to increase loans and overdraft to customers, engage in profitable investments, intensify the introduction of more innovative banking products and employ mechanisation to increase profitability.  
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