ghanaopendata/ghanaian-research-english huggingface dataset:
Credit management practices of two rural banks in the Greater Accra Region

Rural banks have been vulnerable to high loan default, which led to 23 of them becoming distressed in 1999. It is for this reason that the research was conducted into the credit management practices of rural banks. The study explored the credit management practices of two rural banks in the Greater Accra Region to identify the inherent weaknesses in the credit delivery processes that contribute to repayment difficulties and recommend measures for improvement. A sample size of two hundred credit files was randomly selected to cover 10 per cent of the population. The data collection consisted mainly of the review of credit files and records and on-site examination reports. The credit data collected were analysed by using percentage changes, averages and aggregation on trend bases. The findings of the research among others were: (a) credit approvals were largely based on adequacy of collateral; (b) monitoring/ supervision was generally weak in the banks; (c) loan loss provisions were under provided and laxity in adopting the credit delivery process contributed to some extent in high non performing loans. In addition training in credit management was on adhoc basis and did not necessarily meet the needs of credit officers to ensure their effectiveness and efficiency. It was recommended that the due credit delivery processes should be followed strictly to minimise the incidence of high loan default. Furthermore, appropriate training programmes should be offered to directors and management personnel to facilitate the taking of good credit decisions.

Source: UCC
Credit Risk and Financial Performance of Listed Banks in Ghana

Credit creation process exposes banks to high default risk which could lead to financial distress including bankruptcy. The objective of the study is to identify the key determinants of credit risk faced by the banks in Ghana and to assess its impact on their financial performance in terms of profitability. The study is based on data from seven banks operating in Ghana for a 15-year period ranging 2001 to 2015. The study showed an inverse relationship between capital adequacy and credit risk at 1% validating the hypothesis. Also business operation efficiency measured by Management efficiency ratio (MER) and trading income to total revenue ratio showed a negative significant relationship with credit risk at 5% and at 10% level of significance respectively which also provided a strong argument for the stated hypothesis. Return on equity and return on asset showed a significant inverse relationship with credit risk at 1% significant level. similar observation was made on net interest ratio which also showed a significant inverse relationship with credit risk at 5% level of significance but was against the expected positive relationship from the literature. Considering the identified determinants of bank credit risk, combined with how credit risk impacts bank profitability, an efficient operational expense management of banks would not only increase the profit margin of these banks but also reduce the tendency of threat on the survival of these banks. This is due to the significant relationship between management expense ratio and credit risk and also with profitability. From the result of the study, conclusion was arrived on the basis that, though there may be other factors that affect the credit risk of banks in Ghana, capital adequacy, management operational efficiency, management of liquidity risk and the size of the bank, annualised changes in inflation and changes in GDP are major determinants of credit risk due to their high statistical significance level.

Source: UCC
Credit risk and profitability of some selected credit Unions in Ghana

The paper aims to examine the impact of credit risk on the profitability of credit unions in Ghana. The specific objectives are: to examine the methods of measuring credit risk, examine the factors that influence credit standards of credit union, examine the relationship between credit risk and profitability and to assess the credit risk management strategies adopted by credit unions in Ghana. The research design adopted by the study was a descriptive research design. A sample size of 60 out of the population of 400 credit unions in Ghana was used. A self-administered questionnaire was used as the instrument for the collection of data. The study found out that the use of ratio of non performing loans to total loans, levels of bad debt written-off and increase in provision for loan losses are methods common in measuring credit risks to all credit unions. It was revealed that there is a negative relationship between credit risk and profitability. The findings revealed that cost of risk associated with the loan, business cycle, availability of interim financing mechanism are some of the conditions that influence the credit standards of credit unions in Ghana. The study found that availability of lending policies, different credit terms for different customers and holding guarantors responsible for the loss and taking over collateral are management strategies towards risk management. It is also recommended that credit unions must develop a framework that consistently measures credit risk. Management of credit unions must provide regulations on credit risk, monitoring mechanisms and credit granting processes to loan/credit officers and also government through the Bank of Ghana can develop and enforce some standard credit guidelines that will influence the credit policies of credit unions.

Source: UCC
Credit Risk and Profitability of Some Selected Credit Unions in Ghana

The paper aims to examine the impact of credit risk on the profitability of credit unions in Ghana. The specific objectives are: to examine the methods of measuring credit risk, examine the factors that influence credit standards of credit union, examine the relationship between credit risk and profitability and to assess the credit risk management strategies adopted by credit unions in Ghana. The research design adopted by the study was a descriptive research design. A sample size of 60 out of the population of 400 credit unions in Ghana was used. A self-administered questionnaire was used as the instrument for the collection of data. The study found out that the use of ratio of non-performing loans to total loans, levels of bad debt written-off and increase in provision for loan losses are methods common in measuring credit risks to all credit unions. It was revealed that there is a negative relationship between credit risk and profitability. The findings revealed that cost of risk associated with the loan, business cycle, availability of interim financing mechanism are some of the conditions that influence the credit standards of credit unions in Ghana. The study found that availability of lending policies, different credit terms for different customers and holding guarantors responsible for the loss and taking over collateral are management strategies towards risk management. It is also recommended that credit unions must develop a framework that consistently measures credit risk. Management of credit unions must provide regulations on credit risk, monitoring mechanisms and credit granting processes to loan/credit officers and also government through the Bank of Ghana can develop and enforce some standard credit guidelines that will influence the credit policies of credit unions.

Source: UCC
Credit Risk Management and Performance of Selected Commercial Banks in Ghana

The study sought to determine the effect of credit risk management on financial performance of commercial banks listed on the Ghana Stock Exchange. It employed the quantitative research approach and explanatory design of which the targeted all commercial banks listed on the Ghana Stock Exchange (GSE) for the period 2014 – 2018. However, only 10 commercial banks with accurate information about their financial statements from 2014 to 2018 were considered in this study. The study employed the panel data analysis structured on the Ordinary Least Squares (OLS) regression method to examine the relationship between credit risk management and banks‘ performance. This was done with the aid of multiple regression technique of the Statistics and Data software (STATA version 14.0). Leverage Ratio (TDA) has negative relationship with the financial performance (ROA) of selected listed commercial banks in Ghana. Furthermore, Non-Performance Loan Ratio (NPLR) has negative relationship with the financial performance (ROA) of commercial banks. Therefore, the study recommended that the Bank of Ghana should encourage Commercial banks to reduce their lending rates prudently and other fees and commission charge or even try to waive some charges on banking services. Also, Commercial banks should boast the confidence of their customers to deposit more by keeping adequate liquidity, capital levels and quality assets on their books. Due to the negative relationship between Non-Performing Loans Ratio (NPLR) on performance, commercial banks should be critical in given out loans and how they are retrieved on time.

Source: UCC
Credit Risk Management and Profitability: A Case of Commercial Banks in Ghana

The study focused on credit risk management and profitability of local banks in Ghana. Profitability (return on equity) was the dependent variable and it was used to reveal the attitude of banks toward risk management. To achieve the overall purpose, credit risk management was measured using loan loss reserves, capital adequacy and credit solvency. The study followed quantitative analytical research approach and causal/explanatory design. The study used secondary source data compiled from audited financial statements of the local banks in Ghana. Data construction was undertaken to measure the relevant study variables using financial ratios. The data span from 2008 to 2019. Thus, annual data frequency was used for the investigation. Ordinary least square (OLS) econometric technique was employed to estimate the relationships the variables formulated in this study. The result from the findings revealed that loan loss provision showed a negative effect on the profitability of local banks as well as credit solvency. On the other hand, capital adequacy ratio had a positive impact on profitability. The study therefore concluded that following the high loan loss provision and the consequential effect on profitability, it is incumbent on the banks (local banks) to put up stringent measures to curtail the occurrence of non-performing loans. It is further recommended that owing to the negative effect of loan loss provision and credit solvency exposure, local banks in Ghana are expected to develop and implement credit policy aim at understanding the antecedents of loan loss and counteract these antecedents with prudent credit clearance prior to granting loans to prospective loan applicants.

Source: UCC
Credit risk management of non-bank and banking institutions: a comparative study of teachers’ fund financial services and Unique Trust Bank

The issue of credit risk is of greater concern because of the higher levels of perceived risks resulting from some of the characteristics of clients and the business conditions that these clients find themselves in. The structure of risk management calls for a review that reflect on policies and procedures which will help manage risk as well as conform to the best practices. As a contribution to this exercise, this study focuses on Unique Trust (UT) Bank and Teachers’ Fund (TF) Financial Services with the aim of comparing the firms’ risk practices as well as assessing their risk management practices. A structured interview guide covering understanding risk and risk management; risk identification; risk assessment and analysis; risk monitoring; risk management practices; and credit risk analysis was developed and posed to the credit officials of Unique Trust Bank and Teachers’ Fund Financial Services. The study revealed that both firms have a good risk profile. It also found that Unique Trust Bank is somewhat efficient in risk management, and risk identification and risk assessment and analysis are the most influencing variables in risk management practices. Finally, the results indicate that there is a significant difference between Unique Trust and Teachers’ Fund Financial Services in the practice of risk assessment, risk analysis, risk monitoring and risk control. Thus the study recommends that TF should pay more attention to monitoring risk exposure and revising its traditional techniques of credit mitigation. Also UT and TF should review the methods used in risk assessment and analysis.

Source: UCC
Credit risk management practices of Amantin and Kasei Community Bank Limited

The study set out to examine the credit risk management practices of the Amantin and Kasei Community Bank Limited. A mix of qualitative and quantitative research approaches was adopted in a cross-sectional research design. The General Manager, as well as the 15 loan officers for all the loan schemes, the Internal Auditors, Head of Operations and Accounts Department staff were purposively sampled for the study because of their direct involvement in credit management. Primary data on the effectiveness of recovery of defaulted loans and the management challenges of credit risks were also collected from the sampled employees. Secondary data on the non-performing loans ratios from 2009 to 2014 were accessed for the analysis on the trends in credit risk exposure. Questionnaires were used to collect data from the loan officers for quantitative analysis. Interview guides were used to collect data from the General Manager, and the Internal Auditors for qualitative analysis. The quantitative data were analysed using correlation matrices, percentages and frequencies. The qualitative data was discussed and quotes were made to support salient issues. The first conclusion drawn by the study is that, the bank performed comparatively well with the general credit default rates in the Ghanaian banking industry from 2009 to 2014 accounting years. However, the rate of default was fast increasing and that raises concerns for the bank’s operations. The study also concludes that the credit management practices are in line with general banking practices. The study recommended investing further in training of loan officers in loan recovery practices and investing into data management technology for managing client information

Source: UCC
Credit risk management, pricing strategies and performance of micro and small enterprises in the Cape Coast Metropolis

The purpose of the study was to investigate credit risk management and pricing strategies of Micro and Small Enterprises (MSEs), and their influence on the enterprises’ performance at Cape Coast Metropolis (CCM). The descriptive survey design was adopted for the study. A sample size of 179 was used for the study. The snowball sampling technique was used to select the 179 respondents who were made up of owners/managers and account/finance staff of the various MSEs in the metropolis. The instrument used in collecting data was questionnaire. The data were analysed using both descriptive and inferential statistics. The study revealed that owners/managers and account/finance staff of the various MSEs in CCM view credit risk management and pricing strategies of their enterprises in positive terms. Also, credit risk management and pricing strategies have a significant influence on MSEs’ performance in the long run. However, pricing strategies influence MSEs’ performance more than credit risk management strategies. Based on the findings, the study recommends that the supervision and management of credit risk in MSEs should not be vested on only the owners/managers but rather a three-member committee should be formed to take care of that. Also, MSEs should put in place effective measures to assess the most effective pricing strategy in order to reduce product costs and thus increase performance whenever such a strategy is used. They should also adopt ways to implement their pricing strategies better compared to competitor MSEs.

Source: UCC
Crisis of legitimacy: Secularisation and the authority of Asante traditional rulers in Ghana’s decentralization

Ghana’s attempt at decentralization has brought into collision course two systems of governance because of the poor interface between traditional authorities and district assemblies, creating a crisis of legitimacy. Previous studies on this development situate the crisis on the existence of two legitimacies or dual governments. The paper theorizes this development around the tension between the sacred and the profane. It argues that the war of legitimacy arises because representation is differently understood by these two systems of governance. Using historical and phenomenological approaches, the paper observes that it is the religious basis of the chieftaincy institution as against the secular basis of decentralized institutions that is creating a tension between the sacred and the profane. It therefore concludes that secularization has created differentiation leading to polycentric sources of power making the traditional authorities lose their hegemony over people, land, and its resources. The traditional authorities in their attempt to claw back their lost power are using the sacred basis of their legitimacy to insist on their right to represent their communities

Source: UCC
A criteria and indicator prognosis for sustainable forest management assessments: Concepts and optional policy baskets for the high forest zone in Ghana

This article establishes principles conveyed by criteria and indicators as a useful tool for measuring progress made toward sustainable forest management (SFM). Pedagogically, the conceptual construction raises questions on the following topics: (a) the various management practices and policies that exist in the high forest zone, (b) how criteria and indicators for assessments are selected, and (c) how progress made toward SFM is measured. Performance scores are established for indicators identified within the three sectors (forest ecosystems, forest communities, and the economy) for sustainability assessment. Measuring progress toward SFM operations are quantitatively performed with estimated maximum and minimum thresholds levels at which resource-use would be sustained using the Measure of Forest Resource-Use Sustainability Scale (MoFRUSS). The outcome of the measurement operations, as depicted by MoFRUSS, reveals the actual extent to which stakeholder’s initiatives toward sustainable forest management has progressed and in which direction it is moving. It also offers optional policy baskets for resource management interventions from which the socio-eco economic bundle is recommended if the forestry sector of Ghana’s Vision 2020 (sustainable development) is to be achieved with improved societal well-being, improved environmental health and vitality, and improved economic growth and development

Source: UCC
Critical analysis of the role of innovative capabilities on firm performance: Evidence from the University of Cape Coast administration in Ghana

Background: The increasingly competitive business environment has made it imperative for organisations to put in place systems and processes that will guarantee appreciable firm performance in the interest of its stakeholders. To this end, several solutions have been developed to ensure that desired firm outcomes are achieved despite the dynamics of competition. However, critical review of extant literature reported mixed results on the innovative capabilities of firms and their performance nexus. Therefore, this article explored the role of innovative capabilities on the performance of firms with the University of Cape Coast as a case study. Aim: This paper explored the role of innovative capabilities on the performance of firms with the evidence from the University of Cape Coast. Setting: The research was carried out in Ghana to assess innovative capabilities and performance relationship among institutions of higher learning with evidence from the University of Cape Coast. Methods: Using a descriptive research design, the study collected data from 250 administrative staff in the university of Cape Coast. The findings of the study confirmed that the administrative staffs of the University of Cape Coast have embraced innovation at different levels of operations. Results: The findings indicate that innovation in the organisation is able to promote high team spirits, risk taking, productivity, low resistance to change, competitive advantage, increase market share, increase productivity among staffs, growth and profitability of educational institutions, creates loyalty towards the institution’s services, and makes teaching and learning convenient. Conclusion: It was concluded that there have been some innovations in University of Cape Coast and so much of such innovations would make teaching and learning more convenient, lead to higher competitive advantage and market share and boosting overall performance.

Source: UCC
A Critical Assessment of the Role of the Evangelical Presbyterian Church, Ghana in the Socio-Economic Development of the Asɔgli State from 1981 to 2014

Asɔgli has been one of the greatest beneficiaries of the ministry of the EP Church, Ghana (EPCG) since the establishment of the church in Asɔgli in 1859. In spite of the conspicuous EPCG projects one sees when travelling around the country particularly in Asɔgli, there is no single well researched academic work that has compiled and documented these projects. This study, which began in May 2014, was thus conducted to do a critical assessment of the role of the EPCG in the socio-economic development of the Asɔgli State with a particular focus on the period 1981 to 2014 – the period which captured the entire moderatorship of the Very Rev. Professor Noah Komla Dzobo, the 9th moderator of the EPCG. As a socio-historical study, the historical research method was employed to retrieve data from primary and secondary historical sources. Data collected on past events that gave a holistic account of what really transpired in the past was systematically examined. The research discovered that the EPCG’s role in the socio-economic development of Asɔgli was all encompassing – spiritual and moral development, formal education, hospitality & housing, agricultural services, health & healing services, projects of EPDRA and job creation. The study also discovered that the church has over the years collaborated with Asɔgli for the socio-economic development of the people even though there were still areas of disagreements between the two based on some agelong traditional beliefs and practices. In spite of the tremendously phenomenal achievements of the church, in 1991 she was hit catastrophically by her greatest schism ever which split the church into two leaving myriad of negative consequences and bitter lessons moving into the future. Respect for constitutionality and democratic tenets, improving transparency and accountability in church administration and management and keen involvement of church leadership in spiritual renewal in the areas of bible study and prayer, have been recommended for adoption and implementation.

Source: UCC