Moses Dunyoh

The study examines the impact of credit risk on financial performance of rural and community banks in Ghana. The study adopts a survey study design. The target population consists of all rural and community banks in Ghana. The study utilized the purposive sampling method to select Ghana's rural and community banks. The research relied on annual reports from rural and community banks in Ghana for the period 2014-2018. The research used ten(10) rural and community banks whose financials are available throughout the time being studied. The secondary data for the analysis is from the rural and community banks' annual reports. Data analysis was performed using STATA version 13 software. The findings show negative relationships between the two credit risk indicators and the measures for financial performance. The study concludes that rural and community banks' financial performance is compromised by credit risk and that credit risk is steadily increasing and has the ability in the future to hinder rural and community banks' financial performance. The study's key recommendation is that management of rural and community banks should; work closely with credit reference offices in the country to scrutinize credit applicants, assess credit applicants efficiently by using credit manuals as a basis for screening poor clients from good ones and applying all credit policies to ensure that human interference is prevented in the criteria for credit applicants.

The study examines the impact of credit risk on financial performance of rural and community banks in Ghana. The study adopts a survey study design. The target population consists of all rural and community banks in Ghana. The study utilized the purposive sampling method to select Ghana's rural and community banks. The research relied on annual reports from rural and community banks in Ghana for the period 2014-2018. The research used ten(10) rural and community banks whose financials are available throughout the time being studied. The secondary data for the analysis is from the rural and community banks' annual reports. Data analysis was performed using STATA version 13 software. The findings show negative relationships between the two credit risk indicators and the measures for financial performance. The study concludes that rural and community banks' financial performance is compromised by credit risk and that credit risk is steadily increasing and has the ability in the future to hinder rural and community banks' financial performance. The study's key recommendation is that management of rural and community banks should; work closely with credit reference offices in the country to scrutinize credit applicants, assess credit applicants efficiently by using credit manuals as a basis for screening poor clients from good ones and applying all credit policies to ensure that human interference is prevented in the criteria for credit applicants.

The primary purpose of this research is to examine the effect of Non-Performing Loans (NPLs) on the profitability of universal banks in Ghana. The study is focused on the effect of non-performing loans on return on assets and return on equity of universal banks in Ghana. The study uses quarterly time series data collected by Bank of Ghana on all universal banks operating in the banking sector for the period 2007-2018. The multiple regression technique is used to analyse the models developed. The study reveals that non-performing loans have a significant negative effect on return on equity of universal banks in Ghana. The study also reveals a significant negative relationship between non-performing loans ratio and return on asset. The study recommends an improvement in the profitability of universal banks by reducing non-performing loans in individual banks. Universal banks must improve their loan monitoring strategies and manage their loan risk exposure to customers. The study recommends an improvement of the regulatory system of the central bank. Appropriate guidelines must be instituted by the central bank to prevent universal banks from advancing loans to customers with high credit risk.