An Assessment of Credit Management Practices at Agricultural Development Bank (ADB) Branches in the Eastern Region of Ghana

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This study assessed credit management practices at ABD branches in the Eastern region of Ghana. This was carried out by analysing the process of accessing credits; credits control processes and credits collection strategies. This was done against the background that there was huge debts as a result of nonperforming loans affecting the financial status of the bank. The descriptive survey method was used for the study. Sample size of 81 members of staff was drawn from the 101 staff in all the six ADB braches in the Eastern region of Ghana. The cluster sampling method taking into consideration each branch as a cluster was used to identify individual sample units for the study. Two main sources of data were used for the study namely the primary and secondary sources. Questionnaires were used as the main instrument to collect the primary data on access to credit, credit control processes and credit collection strategies. Among the major findings of the study are; the main factors influencing access to credit are the stringent policy guidelines as well as the credit worthiness of the customers. A major credit control process was the process of ensuring compliance of internal guidelines. A major recommendation of the study was the need to adopt flexible policy which can improve access to credit.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION,2012