THE ASSESSMENT OF CREDIT RISK MANAGEMENT PRACTICES OF GHANAIAN NON-BANKING FINANCIAL INSTITUTIONS; A CASE STUDY OF SUAME CIRCUIT CO-OPERATIVE CREDIT UNION LTD

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 DECLARATION
I certify that this dissertation is my own work. I have read and understood the University code of ethics and regulations concerning plagiarism and the penalties to be incurred if my work is deemed unauthentic. I am willing to allow my work to be used as a sample thesis or reference document by either Coventry University or GTUC for future students.

Signed: ...................... Date: ................. (Amponsah – Doku Aaron)

Signed: .....................Date: .................... (Mr. Kwaku Duah Berchie)

ACKNOWLEDGEMENT
It is a great pleasure to me to thank the many people who in different ways have supported my graduate studies, and contributed to the process of writing this thesis. First, I would like to thank my supervisor, Mr. Kwaku Duah Berchie for his selfless and insightful directions. I also thank Dr. Robert Baffour for his thesis clinic which really helped me in writing the thesis. I like to express my gratitude to Mr. Peter Annan Aborhey, who was my guidance angel during the period of writing the thesis. I also thank Miss Mary Boatemaa of Youth Center for typesetting the thesis. My sincere thanks also go to the B.O.D, Management and Staffs of Suame Circuit Co-op. Credit Union Ltd for allowing me to use their company for this study. I thank my wife Mrs Deborah Amponsah – Doku for her unflinching support and understanding during my studies. My deepest appreciation and gratitude goes to my mother, Mrs Margaret Amponsah Doku, and my sister, Euphegenia Selma Darkoah Amponsah for their financial support and encouragement throughout my studies. Finally, above all, I thank the Almighty God for His grace, wisdom, understanding and guidance throughout the studies.

DEDICATION
This work is dedicated to my late father, Mr. Robert Amponsah Doku, my mother, Mrs Margaret Amponsah Doku, my wife Deborah and my three lovely children; Samuel, Nhyira and Nana Akosua.

ABSTRACT
The study sought to assess the credit risk management practices of Non-Banking Financial institution in Ghana, taking a cursory look at management approach undertaken by Suame Methodist Cooperative Credit Union to strategically position itself in response to the ever increasing competition in the industry; so as to identify the credit risk management processes and systems at Suame Methodist Cooperative Credit Union; ascertain the challenges of risk management practices in Suame Cooperative Credit Union.; and investigate the extent to which risk management impacts on the performance (profitability) of Suame Cooperative Credit Union. Using the purposive sampling method for the selection of the sample size of twenty members of staff (comprising both managerial and non-managerial grade) questionnaires were used for the collection of primary data. This study established the needed frame work of financial institutions and tends to bring into view the challenges as well as the daily routine processes of the loan portfolio and its managements. The study realized that the inability to properly manage portfolios under one’s care results in huge losses to the credit union, and subsequently set aside as bad debts after several attempts to recover fails; thereby resulting into higher the risk of credit management the lesser the performance of the credit union, since its performance is dependent on the general portfolio divestiture. It is recommended that, Suame Cooperative Credit Union should diversify their loan portfolios into different packages that will suit their clients by taking the financial standing of their clients into consideration. The cooperative credit union should develop a comprehensive plan to monitor the loans given out. This will help to increase the rate of repayment and minimize default rate of clients as well as help facilitation of fishing out...
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