Assessing the performance of rural banks in Ashanti region :A Case Study of Nwabiagya Rural Bank Limited (2004-2013)

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June, 2015
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This research is a case study for assessing the performance of Rural Banks in Ashanti Region with Nwabiagya Rural Bank Ltd as a case study. The bank was established in August 1987. Currently, the bank has eight (8) branches, about 125,000 customers and 201 staff in Ashanti Region. In assessing their performance, a ten year annual financial statements for the period of 2004 to 2014 was used. As a financial institution, some of major challenges being confronted with include loan default, fraudulent practices and competition from other banks. In the mist of these challenges, the bank sometimes put up splendid performance which warranted awards from some organizations. The study has been grouped into five chapters. Chapter one deals with introduction to the study which consists of background of the study, problem statement, research, general and specific objectives. Other areas explored include scope, justification, brief methodology, limitations and organization of the study. In chapter two, various literatures were reviewed to find out what others had written about the work, what were missing out in their works and why what were missing out were very important to this study. In Chapter three both primary and secondary data were collected. The primary data were collected using questionnaire and interview guides. The secondary data were collected from the data base of the bank. The major statistical tools employed for analyzing the performance were SPSS, Minitab software, bar and pie charts. In chapter four, the data were analyzed to find out whether they were similar to or different from previous studies. In chapter five, the main findings were that, the major determinants of bank’s performance were profitability, customer growth, number of agencies established. The major challenges included loan default, competition from other banks and high taxes from the government. It was also revealed that the bank either reinvested its profitability in other agencies or shared it as dividend among their shareholders. The main recommendations were that, in order to increase their performance further, the bank should employ the services of experts to restore their net work problems confronting them, install ATM at their premises and other areas; and offer more projects to assist the people in the community using part of their profits.
Thesis submitted to Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of Master Of Business Administration (Finance Option) ,