Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)

Owusu Alfred; Amo Francis

doi:doi:10.11648/j.ash.20160203.11

| Peer-Reviewed

Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)

Owusu Alfred, Amo Francis

Published in Advances in Sciences and Humanities (Volume 2, Issue 3)

Received: 26 September 2016 Accepted: 28 October 2016 Published: 23 November 2016

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

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.

Published in	Advances in Sciences and Humanities (Volume 2, Issue 3)
DOI	10.11648/j.ash.20160203.11
Page(s)	17-30
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Micro Financial Institution, Nkoranza, Internal and External Supervision, Bank of Ghana

References

[1]	Ablorh, W. (2011). Microfinance and socio-economic empowerment of women: A case of Opportunity International Savings and Loans clients. Kwame Nkrumah University of Science and Technology (Unpublished Master’s Dissertation), 16-19. Availableathttp://dspace.knust.edu.gh:8080/jspui/bitstream/123456789/4196/1/Ablorh%20thesis.pdf
[2]	Access Africa. (2009). Principles of linkage. CARE Access Africa and Hugh Allen for Access Africa.
[3]	Addae-Korankye A. (2014). Causes and Control of Loan Default/Delinquency in Microfinance Institutions in Ghana. American International Journal of Contemporary Research, 4(12).
[4]	Adjei, K. J. (2010), Microfinance & Poverty Reduction: The Experience of Ghana. Africa: A Study of Informal Finance in Ghana, Overseas Development Institute, Africa: Lessons from Linkage Efforts, IMF Institute and the Joint Africa Institute (Paper presented at High-Level Seminar on African Finance for the 21st Century).
[5]	Apenteng. O. J., (2012) the effect of supervision on staff performance in Ga-south municipal education directorate. Thesis, Ghana (Unpublished).
[6]	Aryeetey, E., 2008, From Informal Finance to formal Finance in Sub-Saharan.
[7]	Bank of Ghana Annual Reports, 2003–2007.
[8]	Bank of Ghana Website, www.bog.gov.gh accessed on 02/03/09.
[9]	Bascom, William R., 1952: The Esusu: a Credit Institution of the Yoruba. Journal of the Royal Anthropological Institute 82: 63-69.
[10]	Baten, M. W. (2009, Oct). Vision of micro financing in Bangladesh: Success and challenges. Copenhagen Business School (Unpublished Master's thesis). Available at http://studenttheses.cbs.dk/ bitstream/handle/10417/796/waliul%5Fbaten.pdf.
[11]	Bjorkman M &Svensson J. 2009. Power to the People: Evidence from a Randomized Field.
[12]	Boahen, A. (1997) A study of its formation and Relations with its Neighbour. Thesis U C C.
[13]	Boateng, D., (2009) Commercial Banks entering the Microfinance Market: Issues.
[14]	Burkhauser, M., Metz, A, J. (2009) using coaching to provide on going support and supervision to Out-of -School Time Staff, implementing Evidence Based Practices in Out-of School Time Programs: The Role of Frontline Staff, [online] available at http://www.childtrends.org/files/childtrends-20090111RbStaffCoaching.pdfaccessed july 2012
[15]	CARE Access Africa. (2010). VSLAs linkage selection criteria. PrabhatLabh. (Dollar figures have been converted from Rwandan francs.)
[16]	CGAP (Consultative Group to Assist the Poor). (2009). “Focus on Deposits and Consumer Protection: A Silver Lining to the Crisis?” Article based on podcast interview with Elizabeth Littlefield, May 28.
[17]	Christen, R., K. Lauer, T. Lyman, and R. Rosenberg. (2012). Microfinance Consensus Guidelines: A Guide to Regulation and Supervision of Microfinance. Washington, DC: CGAP. Development Study Monograph No. 4 and Columbus College of Education of Instruction. New York: Prentice Hall Inc. Economics 124:2. Experiment of a Community-Based Monitoring Project in Uganda. Quarterly Journal of Financial services for Women Entrepreneurs in the Informal Sector of Ghana, for Consideration, Business and Financial Timesfuture counseling.
[18]	Gerald Pollio & James Obuobi (2010), Microfinance Default Rate in Ghana: Evidence from Individual Liability credit contract.
[19]	Ghartey, G. (2007). Sustaining Microfinance in Ghana: Implications of both Prudential and Non-prudential Regulations for the Sub-sector. Paper presented at the annual Microfinance Conference, University of Cape Coast, Ghana.
[20]	Henderson, P., & Gysbers, M, C. (2006) Providing Administrative and Counselling Supervision for school counsellors. (on-line) available at http://www.counsellingoutfit.com/Vistas0.6.35.pdf
[21]	Ivancevich, J. M. (1998). Human resource management 7th ed. Boston: Irwin McGraw-Hill.
[22]	Kimando, N. L., Kihoro M. J., and Njogu W. G. (2012) Factors Influencing the Sustainability of Micro-Finance Institutions in Murang’a Municipality, International Journal of Business and Commerce Vol. 1, No.10: Jun 2012[21-45](ISSN: 2225-2436).
[23]	Kohansal, M. R. and Mansoori, H. (2009). Factors Affecting on Loan Repayment Performance of Farmers in Khorasan-Razavi Province of Iran. Conference on International Research on Food Security, Natural Resource Management and Rural Development, University of Hamburg, Germany. Retrieved on January 5, 2015 from http://www.tropentag.de/2009/abstracts/full/264.pdf
[24]	Ledgerwood. J, Earne J., Nelson C (2013). The New Microfinancial Handbook, Washington DC 20433, The Bank 1818 H Street NW.
[25]	Ledgerwood, J., White, V. (2006). Transforming Microfinance Institutions. Washington, DC: World Bank. Macmillan Publishing Company.
[26]	Leedy, P. (1993). Practical research. New York: MacMillan Publishing Co.
[27]	Microfinance in Africa (2013) Overview and suggestions for action by stakeholders. Retrieved on 27/12/2015; 21:45 from united nation website of office of special advisor on Africa.
[28]	Mills, D. Q (1997), real power to the people. Management Development
[29]	The missing parts of microfinance: Services for consumption and insurance. SAIS Review 21, 61-70.
[30]	Ntiamoah E. B., Oteng E., Opoku B., Siaw A., (2014). Loan Default Rate and its Impact on Profitability in Financial Institutions. Research Journal of Finance and Accounting, 5(14).
[31]	Owusu D. A, Oppong A, Agyeiwaa D and Abruquah L., (2015) Reducing loan default rate among microfinancial institutions (MFI) in Ghana through innovative product design, delivery and efficient loan management. International journal of economics, commerce and management, Vol. 111, Issue 3, United Kingdom.
[32]	Richard, V. (2007). Services for the Poor: What Work, Why and Where? Sri Lanka: Sri Lanka. Asian Development Bank.
[33]	Rosenberg, R. (1996). “Microcredit Interest Rates.” CGAP Occasional Paper 1. CGAP, Washington, DC.
[34]	Rubin, A., & Babbie, E. (2001). Research methods in social work (4th ed.). Pacific.
[35]	Saunders M, Lewis P and Thornhill A. (2007), Research Methods for Business students(4th Edition).
[36]	Seibel, H. D (2013) Microfinance in Nigeria: Origins, Options and Opportunities, Hahnwaldweg Köln/Germany, University of Köln.
[37]	Strachan D. (2010). International stakeholder consultation report In Scale Project. Unpublished.
[38]	Tanner and tanner, (1987), Supervision in Education Problems and Practices. New York.
[39]	Warue, B. N., (2012). Factors affecting loan delinquency in Microfinance in Kenya. International Journal of Management Sciences and Business Research, 1(12). Working Paper 78, London.
[40]	World Bank -Africa Region, Studies in Rural and Micro Finance, (1999), World Bank New York

Cite This Article

Plain Text BibTeX RIS

APA Style

Owusu Alfred, Amo Francis. (2016). 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, 2(3), 17-30. https://doi.org/10.11648/j.ash.20160203.11

Copy | Download

ACS Style

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). Adv. Sci. Humanit. 2016, 2(3), 17-30. doi: 10.11648/j.ash.20160203.11

Copy | Download

AMA Style

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). Adv Sci Humanit. 2016;2(3):17-30. doi: 10.11648/j.ash.20160203.11

Copy | Download

@article{10.11648/j.ash.20160203.11,
  author = {Owusu Alfred and Amo Francis},
  title = {Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)},
  journal = {Advances in Sciences and Humanities},
  volume = {2},
  number = {3},
  pages = {17-30},
  doi = {10.11648/j.ash.20160203.11},
  url = {https://doi.org/10.11648/j.ash.20160203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ash.20160203.11},
  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.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)
AU  - Owusu Alfred
AU  - Amo Francis
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ash.20160203.11
DO  - 10.11648/j.ash.20160203.11
T2  - Advances in Sciences and Humanities
JF  - Advances in Sciences and Humanities
JO  - Advances in Sciences and Humanities
SP  - 17
EP  - 30
PB  - Science Publishing Group
SN  - 2472-0984
UR  - https://doi.org/10.11648/j.ash.20160203.11
AB  - 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.
VL  - 2
IS  - 3
ER  -

Copy | Download

Author Information

Owusu Alfred

Marketing Department, Kumasi Technical University, Kumasi, Ghana
Amo Francis

Marketing Department, Kumasi Technical University, Kumasi, Ghana

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Owusu Alfred, Amo Francis. (2016). 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, 2(3), 17-30. https://doi.org/10.11648/j.ash.20160203.11

Copy | Download

ACS Style

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). Adv. Sci. Humanit. 2016, 2(3), 17-30. doi: 10.11648/j.ash.20160203.11

Copy | Download

AMA Style

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). Adv Sci Humanit. 2016;2(3):17-30. doi: 10.11648/j.ash.20160203.11

Copy | Download

@article{10.11648/j.ash.20160203.11,
  author = {Owusu Alfred and Amo Francis},
  title = {Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)},
  journal = {Advances in Sciences and Humanities},
  volume = {2},
  number = {3},
  pages = {17-30},
  doi = {10.11648/j.ash.20160203.11},
  url = {https://doi.org/10.11648/j.ash.20160203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ash.20160203.11},
  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.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Effects of Poor Supervision on the Sustainability of Micro-Financial Instutions in Ghana (A Focus on Nkoranza Municipality in the Brong Ahafo Region)
AU  - Owusu Alfred
AU  - Amo Francis
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ash.20160203.11
DO  - 10.11648/j.ash.20160203.11
T2  - Advances in Sciences and Humanities
JF  - Advances in Sciences and Humanities
JO  - Advances in Sciences and Humanities
SP  - 17
EP  - 30
PB  - Science Publishing Group
SN  - 2472-0984
UR  - https://doi.org/10.11648/j.ash.20160203.11
AB  - 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.
VL  - 2
IS  - 3
ER  -

Copy | Download