Analyzing the effect of credit risk on construction project implementation success in Barclays Bank Ghana Limited Head office Accra.
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Date
2021-07-07
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Abstract
Most financial institutions are liable to credit risk activities which affects their existence. Credit risk is
simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in
accordance with agreed terms of a contract. This activity has become more prominent in Ghana which
affect project implementation. The research sought to assess the effect of credit risk on project
implementation success specifically at Barclays Bank Ghana Limited. The study investigation was mainly
based on the quantitative research approach using primary data obtained through questionnaire
administered to 40 respondents from the credit risk department. Findings based on the study indicated that
the bank has methodologies for credit risk measurement which aided the bank to quantify credit risk
exposures of individuals who borrow from the bank. The study also revealed that there was minimum
attention to control the adherence of processes as well as poor portfolio risk management. The study again
revealed that ineffective credit policies and guidelines lacks strict adherence to credit standards by
counterparties and borrowers, due to insufficient institutional capacity and proper banking supervision on
the part of central bank. It was also found that projects were successful if completed within the planned
cost and time reducing credit risks. The study recommended that effective credit risk management policy
will increase the successful completion of project. In addition, Barclays Bank Ghana Limited should
continue to diversify its lending activities and should allocate more funds to the productive sectors of the
economy, especially private sector, businesses should be prioritized and supported by the government to
help complete project.
Description
A thesis submitted to the Department of Construction Technology and Management,
College of Art and Built Environment in partial fulfilment of requirement for the
Degree of
Master of Science.
Keywords
Analyzing, Credit risk, Project implementation,, Barclays Bank