Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)
Advances in Sciences and Humanities
Volume 2, Issue 3, June 2016, Pages: 17-30
Received: Sep. 26, 2016; Accepted: Oct. 28, 2016; Published: Nov. 23, 2016
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Authors
Owusu Alfred, Marketing Department, Kumasi Technical University, Kumasi, Ghana
Amo Francis, Marketing Department, Kumasi Technical University, Kumasi, Ghana
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Abstract
Micro financial institution undoubtedly helps to bridge the gap between the rich and the poor in the community. This is because the poor gets financial assistance through the various products rolls out by these institutions and therefore being termed as banking for the poor, and Nkoranza municipality has been left out. However, MFIs in the Nkoranza municipality have been a source of worry as most of these institutions have folded up less than five years of their establishment. It is against this backdrop that the study focuses on the effects of poor supervision on the sustainability of MFI in Ghana. Both primary and secondary sources of data as well as interview guide were used for the study. The study find out that the main causes of this menace is about poor internal and external supervision by both management and the regulatory bodies on the activities of these failed MFI. Diversion of funds as well as corrupt practices by management and some officials from Bank of Ghana also accounted for the failure of these MFI.
Keywords
Micro Financial Institution, Nkoranza, Internal and External Supervision, Bank of Ghana
To cite this article
Owusu Alfred, Amo Francis, Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region), Advances in Sciences and Humanities. Vol. 2, No. 3, 2016, pp. 17-30. doi: 10.11648/j.ash.20160203.11
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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