Management of debts in Micro
finance institutions (MFIs) in Ghana.
The
survival of any banking Institutions depends largely on their ability to mobilize enough funds,
disburse these funds in the form of credits and also ensure timely repayment of
the credit with an eye for profit. Fundamentally, this crystallizes the
business of Financial Institutions and is the primary basis on which its’
quality and performance are judged (Allen & Santomero, 2001; Antwi-Asare
& Addison, 2000). Once credit is made, however, there is a probability that
the borrower or counterparty will fail to meet their obligations in accordance
with agreed terms. Credit risk is, therefore, inherent in Banking
Institutions.
The main purpose of
this study is to:
1.
Assess
the conditions under which loans are accessible to clients of MFIs.
2. To identify the factors responsible for loan
default by clients of MFIs
3.
Find
out how the debtors are managed these institutions.
No comments:
Post a Comment