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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8486

Title: The effect of loan default on the profitability of commercial banks in Ghana
Authors: Kusi Senior, Agyakwa
Issue Date: 6-Apr-2016
Abstract: The focus of this study was to ascertain the effects of loan default on the profitability of commercial banks in Ghana. Secondary data in the form of end of year financial statements from 2007 to 2014 was acquired from four commercial banks in Ghana (UT bank, Ecobank, CAL bank and Fidelity bank,. The Ordinary Least Square regression was employed to estimate the effect of loan default on profitability. It was discovered from the OLS results that, loan default, cost income ratio, total revenue and liquidity ratio were statistically significant. The liquidity risk was not statistically significant. Loan default and cost income ratio had a negative influence on the profitability whereas total revenue and loan recovered had a positive effect on profitability. The study recommends that securities or collaterals must be perfected before an advance is approved to ensure that in the event of default, the bank would not have any impediments in realizing the security.
Description: A thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Masters of Business Administration (Finance Option),2015
URI: http://hdl.handle.net/123456789/8486
Appears in Collections:College of Arts and Social Sciences

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