Skip to main content

A Critical Study on Determinants of Loan Defaults in Some Selected Credit Unions in Kumasi Metropolis of Ghana | Chapter 9 | Insights into Economics and Management Vol. 6

In Ghana's microfinance industry, credit unions play a critical role. They are not only well-established in financial intermediation, but they also give their members better terms and conditions on financial products and services than banks and other financial institutions. Credit unions give their members the ability to access loan facilities at a lower interest rate and with more favourable terms and conditions, such as flexible repayment terms, than banks and other financial institutions. The prevalence of loan defaults or non-performing loans has put Credit Unions' long-term stability in jeopardy. In Credit Unions, diagnosing the causes of loan defaults has become crucial to successful credit risk management practises. The analysis was focused on primary data. 244 Credit Union participants were selected using a targeted sampling methodology. Data was obtained using questionnaires, and a logistic regression model was used. For data analysis, the research used Statistical Product and Service Solution (SPSS v. 20) and Stata (v.14) as statistical methods. Education, loan diversion, surveillance, marital status, and income are all significant factors that affect loan default, according to the findings. There was no evidence of a correlation between loan default and age, gender, or household size. As a result, credit education should be improved, and successful loan monitoring should be followed actively. Loan assessment systems should also be comprehensive, with the application and implementation of credit scoring systems that take into account key loan default variables.

Author (s) Details

Edward Yeboah
Department of Accounting and Finance, KNUST School of Business, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana.

Ms. Irene Mirekuah Oduro
St Peter’s Cooperative Credit Union, Kumasi, Ghana.

View Book :- https://stm.bookpi.org/IEAM-V6/issue/view/40
Labels:

Comments

Post a Comment

Popular posts from this blog

Greening Regional Airports: A Vision for Carbon Neutral Infrastructure | Chapter 12 | Contemporary Perspective on Science, Technology and Research Vol. 3

 This study provides an overview of the energy demand of a regional airport, divided into individual time horizons. The electrification of aircraft systems raises the question of whether airports will be among the largest electricity consumers in our infrastructure in the future. Sustainability and especially emission reductions are significant challenges for airports that are currently being addressed. The Clean Sky 2 project GENESIS addresses the environmental sustainability of hybrid-electric 50-passenger aircraft systems in a life cycle perspective to support the development of a technology roadmap for the transition to sustainable and competitive electric aircraft systems. This article originates from the GENESIS research and describes various options for ground power supply at a regional airport. Potential solutions for airport infrastructure with a short (2030), medium (2040), and long (2050) time horizon are proposed. In addition to the environmental and conservation benefi...
Post a Comment
Read more

Alkali Element Modification of Glucose Molecules as a Method to Dissolve Cancer Cells | Chapter 12 | New Visions in Medicine and Medical Science Vol. 4

  The present study highlights about alkali element modification of glucose molecules as a method to dissolve cancer cells. The central regulation of the mechanisms governing cell proliferation has little effect on cancer cells. Cancer cells are entirely independent of the central command and divide and proliferate on their own, making it challenging to activate their response mechanism. Precisely, this is the reason why they are at risk to the health of humans and/or any biological entities. Instead of trying to reconnect the central command of the growth control mechanism to cancer cells that are already out of the range, we present a method of using the cancer cell’s own irresponsive and uncontrolled growth mechanism to their disadvantage and destroy the cancer cells. We found that this is achievable in an atomic/molecular level study of the glucose molecule, which is the primary food source used for growth and energy generation by all cells in the body, including the cancer cel...
Post a Comment
Read more

Empowerment and Leader Member Exchange towards Organizational Citizenship Behavior Readiness among Government Workforce in Malaysia | Book Publisher International

  State agencies are among the most significant entities that represent the public's needs, and their programmes are essential to a state's and the nation's economic growth and development. State agencies have been rife by public concerns for years, as demonstrated by the Public Complaints Bureau, as problems of inefficiency in service quality and delivery have yet to meet the public's standards. With the support of 15 employees from state agencies on Malaysia's east coast, this study aims to achieve three targets. The first and second objectives are to investigate the ties between leader-member exchange (LMX) and OCB empowerment. The final aim is to define the most significant factors that affect OCB willingness. A total of 288 people took part in the survey, which was conducted using a cluster sampling process. The survey items had achieved the necessary reliability, according to the pilot test results, and some sub-dimensions were renamed after factor analysis. ...
1 comment
Read more