Assessment of the credit risk management practices of Tanoa Capital Point Ltd (TCP)

dc.contributor.authorOtoo, Samuel Addo
dc.date.accessioned2011-08-16T00:02:07Z
dc.date.accessioned2023-04-20T10:25:17Z
dc.date.available2011-08-16T00:02:07Z
dc.date.available2023-04-20T10:25:17Z
dc.date.issued2008-08-16
dc.descriptionA thesis submitted to the School of Graduate Studies of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the Requirements For The Award of Master of Business Administration (MBA) Degree, 2008en_US
dc.description.abstractThe 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.en_US
dc.description.sponsorshipKNUSTen_US
dc.identifier.urihttps://ir.knust.edu.gh/handle/123456789/910
dc.language.isoenen_US
dc.relation.ispartofseries4715;
dc.titleAssessment of the credit risk management practices of Tanoa Capital Point Ltd (TCP)en_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
KNUST Library.pdf
Size:
7.09 KB
Format:
Adobe Portable Document Format
Description:
License bundle
Now showing 1 - 2 of 2
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed to upon submission
Description:
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed to upon submission
Description:
Collections