The impact of credit risk on financial performance: Evidence from rural and community banks in Ghana

Authors

  • Moses Dunyoh Data Link Institute of Business and Technology, Ghana
  • Ernest Twumasi Ankamah School of Graduate Studies, Kwame Nkrumah University of Science and Technology, Ghana
  • Samuel Japo Kosi Kosipa College of Distance Education, University of Cape Coast, Ghana

Keywords:

Credit risk, non-performing loans, total liabilities to total assets, financial performance, rural and community banks.

Abstract

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 that their 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.

References

Adjirackor, T., Oppong, D., Agarwal, S. P., Akuma, J., & Gagakuma, W. (2016). Evaluation of

Credit Risk Management Practices in Societe General Ghana. Research Journal of

Finance and Accounting, 7(13), 102-113.

Adusei, M. (2015). Bank profitability: Insights from the rural banking industry in Ghana, Cogent

Economics & Finance, 3:1, DOI: 10.1080/23322039.2015.1078270.

Afriyie, H. O., & Akotey, J. (2012). Credit risk management and profitability of selected rural

banks in Ghana, Sunyani: Catholic University College of Ghana.

Ahmad, N. H. and Ariff, M. (2007). Multi-country study of bank credit risk determinants.

International Journal of Banking and Finance, 5(1), 135-152.

Akotey, J. O., and Abor, J. (2013). Risk management in the Ghanaian insurance industry.

Qualitative Research in Financial Markets, 5(1), 26-42.

Al-Khouri, R. (2011). Assessing the risk and performance of the GCC banking sector.

International Research Journal of Finance and Economics, 65, 72-78.

Apanga, M. A.-N., Appiah, K. O., & Arthur, J. (2016). Credit risk management of Ghanaian

listed banks. International Journal of Law and Management, 58(2), 162–178.

doi:10.1108/ijlma-04-2014-0033

Appiah, K. O. (2011). Corporate Failure Prediction: Some Empirical Evidence from Listed Firms

in Ghana. China-USA Business Review, 10(1), 32-41.

Asiedu – Mante, E (2011), Rural Banking in Ghana. Combert Impression, Ghana.

Ayertey, O. A.(2018). An Assessment of Credit Risk Management Practices of Adansi Rural

Bank Limited.Available at SSRN: https://ssrn.com/abstract=3252463

Basel Committee on Banking Supervision. (1999). Principles for the management of credit risk -

Consultative paper [online]. Available at: www.bis.org/publ/bcbs54.htm [Accessed 12

April, 2020].

Boahene, S. H., Dasah, J. and Agyei, S. K. (2012). Credit risk and profitability of selected banks

in Ghana. Research Journal of Finance and Accounting. 3(7), 6-14

Bratanovic, S. B., & Greuning, H. (2003). Analyzing and Managing Banking Risk. The World

Bank, Washington, DC.

Brigham, F. E. and Ehrhardt, C. M. (2002). Financial Management, Theory and Practice. Tenth

Edition, South-Western, Thomson Learning, USA.

Buchory, H. A. (2021). Banking profitability: How does the credit risk and operational efficiency

effect?.

Caruso, G., Gattone, S. A., Fortuna, F., & Di Battista, T. (2021). Cluster Analysis for mixed

data: An application to credit risk evaluation. Socio-Economic Planning Sciences, 73,

Cole, S., Giné, X., Tobacman, J., Townsend, R., Topalova, P. and Vickery, J. (2013). Barriers to

household risk management: evidence from India. American economic journal. Applied

economics, 5(1), 104.

Dhakal, B. (2015). The determinants of loan loss provision in Nepalese Commerical Banks.

Journal of Banking and Finance, 30(2), 220-240.

Elyasiani, E. and Mansur, I. (2005). The Association Between Market and Exchange Rate

Risks and Accounting Variables: A GARCH Model of Japanese Banking Institutions.

Review of Quantitative Finance and Accounting. 25(8), 183-262.

Felix, A. T & Claudine, T. N. (2008). Bank Performance and Credit Risk Management,

Unpublished Masters Dissertation in Finance, University of Skovde.

| P a g e

Gaitho, N. W. (2013). Role of credit reference bureaus on credit access in Kenya: A survey of

commercial banks in Kenya. European Scientific Journal, ESJ, 9.

Gestel et. al. (2009). Bank Risk Management, Credit Risk Management Basic Concepts:

financial risk components, rating analysis, models, economic and regulatory capital,

New York: Oxford University Press. pg. 55 – 61

Gestel, T., & Baesens, B. (2008). Credit Risk Management: Basic Concepts: Financial Risk

Components, Rating Analysis, Models, Economic and Regulatory Capital: Basic

Concepts: Financial Risk Components, Rating Analysis, Models, Economic and

Regulatory Capital: Oxford University Press.

Gestel, T., & Baesens, B. (2008). Credit Risk Management: Basic Concepts: Financial Risk

Components, Rating Analysis, Models, Economic and Regulatory Capital: Basic

Concepts: Financial Risk Components, Rating Analysis, Models, Economic and

Regulatory Capital: Oxford University Press.

Gibson, D. (2014). Managing risk in information systems, Jones & Bartlett Publishers.

Greuning, H., & Bratanovic, S. B. (2009). Analyzing banking risk: a framework for assessing

corporate governance and risk management: World Bank Publications.

Greuning, H., & Bratanovic, S. B. (2009). Analyzing banking risk: a framework for assessing

corporate governance and risk management: World Bank Publications.

Gujarati, D.N. and Sangeetha, S. (2007). Basic Econometric. India: McGraw-Hill Education

Books Ltd.

Haneef, S., Riaz, T., Ramzan, M., Rana, M. A. Ishaq, H. M. & Karim Y. (2012). Impact of Risk

Man-agement on Non-Performing Loans and Profitability of Banking54 Sector of

Pakistan. International Journal of Business and Social Science. 3(7), 57-85.

Haneef, S., Riaz, T., Ramzan, M., Rana, M. A. Ishaq, H. M. & Karim Y. (2012). Impact of Risk

Man-agement on Non-Performing Loans and Profitability of Banking54 Sector of

Pakistan. International Journal of Business and Social Science. 3(7), 57-85.

Harker, P.T. and Zenios, S.A (1998).What Drives Performance of Financial Institution.”

Financial Institution Center, 98-21. The Wharton School, University of Pennyslvania.

Haron, S. (2004).Determinants of Islamic Bank Profitability”, Global Journal of Finance and

Economics. 1(1).

Hassan, M. K. and Bashir, A. H. M. (2003). Determinants of Islamic Banking Profitability. ERF

Paper, University of New Orleans, LA and Islamic Development Bank, Saudi Arabia.

Hosna, A., Manzura, B., &Juanjuan, S. (2009). Credit risk management and profitability in

commercial banks in Sweden. rapport nr.: Master Degree Project 2009: 36.

Huang, J. Z. and Huang, M. (2012). How much of the corporate-treasury yield spread is due to

credit risk? Review of Asset Pricing Studies, 2(2), 153-202.

Huang, J. Z. and Huang, M. (2012). How much of the corporate-treasury yield spread is due to

credit risk? Review of Asset Pricing Studies, 2(2), 153-202.

Husni, A. K. (2011). Determinants of Commercial Banks Performance Evidence from Jordan.

International Research Journal of Finance and Economics. pp. 149-158. Available

at:http://web.ebscohost.com.www.baser.dk/ehost/ pdfviewer/ pdf viewer? sid=8b965611-

b0-48df- bc38-348c87c58664% 40sessionmgr 14&vid =5&hid =14 date [Accessed

th July, 2020]

Ibrahim, M. (2010). Performance Evaluation of Regional Rural Banks in India”. International

Business Research 3, (4).

| P a g e

Imbierowicz, B. and Rauch, C. (2014). The relationship between liquidity risk and credit risk in

banks. International Journal of Financial Services Management, 5(2), 107-120.

Imbierowicz, B. and Rauch, C. (2014). The relationship between liquidity risk and credit risk in

banks. International Journal of Financial Services Management, 5(2), 107-120.

Jayadev, M. (2013). Basel III implementation: Issues and challenges for Indian banks. IIMB

Management Review, 25(2), 115-130.

Jayadev, M. (2013). Basel III implementation: Issues and challenges for Indian banks. IIMB

Management Review, 25(2), 115-130.

Jiménez, G., Ongena, S., Peydró, J. L., and Saurina, J. (2014). Hazardous Times for Monetary

Policy: What Do Twenty‐Three Million Bank Loans Say About the Effects of Monetary

Policy on Credit Risk‐Taking? Econometrica, 82(2), 463-505.

Jiménez, G., Ongena, S., Peydró, J. L., and Saurina, J. (2014). Hazardous Times for Monetary

Policy: What Do Twenty‐Three Million Bank Loans Say About the Effects of Monetary

Policy on Credit Risk‐Taking? Econometrica, 82(2), 463-505.

Kalunda, E., Nduku, B. & Kabiru, J. (2012). Pharmaceutical Manufacturing Companies in

Kenya and Their Credit Risk Management Practices. Research Journal of Finance and

Accounting, 3, 159-167.

Kannan, R. (2004). RBI Guidelines on Credit Risk and Credit Risk Management [online].

Personal Website of R. Kannan. Available at:

www.geocities.com/kstability/inbank/risk/credit-risk.html. [Accessed 18 April, 2020].

Kannan, R. (2004). RBI Guidelines on Credit Risk and Credit Risk Management [online].

Personal Website of R. Kannan. Available at:

www.geocities.com/kstability/inbank/risk/credit-risk.html. [Accessed 18 April, 2020].

Kargi, H. S. (2011). Credit Risk and the Performance of Nigerian Banks. Ahmadu Bello

University, Zaria.

Kargi, H.S. (2014). Credit risk and The performance of Nigeria Banks. Acme Journal of

Accounting, Economics and Finance. 1(1),7-14.

Khalid, S., & Amjad, S. (2012). Risk management practices in Islamic banks of Pakistan. The

Journal of Risk Finance, 13(2), 148-159.

Khalid, S., & Amjad, S. (2012). Risk management practices in Islamic banks of Pakistan. The

Journal of Risk Finance, 13(2), 148-159.

Khalid, S., & Amjad, S. (2012). Risk management practices in Islamic banks of Pakistan. The

Journal of Risk Finance, 13(2), 148-159.

Kisivuli, E. L. (2013). The effect of credit risk management on loans portfolio among

Saccos in Kenya. Unpublished thesis submitted to the University of Nairobi.

Kithinji, A. M. (2010). Credit risk management and profitability of commercial banks in Kenya.

School of Business, University of Nairobi, Nairobi.

Kolapo, T. F., Ayeni, R. k. and Oke, M. O.(2012). Credit risk and Commercial Banks

Performance in Nigeria. Australia Journal of Business and Management Research. 2(2),

-38.

Kolapo, T. F., Ayeni, R. K., &Oke, M. O. (2012). Credit risk and commercial banks'

performance in Nigeria: a panel model approach. Australian Journal of Business and

Management Research,2(2), 31.

Kolapo, T. F., Ayeni, R. K., &Oke, M. O. (2012). Credit risk and commercial banks'

performance in Nigeria: a panel model approach. Australian Journal of Business and

Management Research,2(2), 31.

| P a g e

Lawrence, E.L., Smith, S. and Rhoades, M. (1992). An analysis of default risk in mobile home

credit. Journal of financial regulation and compliance, 20(3), 293-306.

Lawrence, E.L., Smith, S. and Rhoades, M. (1992). An analysis of default risk in mobile home

credit. Journal of financial regulation and compliance, 20(3), 293-306.

Liberman, A. (2016). The value of a good credit reputation: Evidence from credit card

renegotiations. Journal of Financial Economics, 120, 644-660.

Lindgren, H. (1987). Banks, Investment Company, Banking Firms, Stockholm Enskilda Bank

(1924-1945). Institute for Research in Economic History, Stockholm School of

Economics, Stockholm.

Liu, G., Mirzaei, A., & Vandoros, S. (2014). The impact of bank competition and concentration

on industrial growth. Economics Letters, 124(1), 60-63.

Longstaff, F. A., & Schwartz, E. S. (1995). A simple approach to valuing risky fixed

and floating rate debt. The Journal of Finance, 50(3), 789-819.

Malhotra, R. (2002). Performance of India’s Regional Rural Banks (RRBs): Effect of the

Manandar, A. (2015). Credit Risk Management in Indian Commercial Banks. International

Journal of Marketing, Financial Services and Management Research, 2(7), 47-51.

Manandar, A. (2015). Credit Risk Management in Indian Commercial Banks. International

Journal of Marketing, Financial Services and Management Research, 2(7), 47-51.

Marshal, I., &Onyekachi, O. (2014). Credit Risk and Performance of Selected Deposit Money

Banks in Nigeria: An Empirical Investigation.European Journal of Humanities and

Social Sciences Vol, 31(1).

Masood, O., & Fry, J. (2012). Risk management and Basel-Accord-implementation in Pakistan.

Review of Finance, 16(2), 439-457.

Masood, O., & Fry, J. (2012). Risk management and Basel-Accord-implementation in Pakistan.

Review of Finance, 16(2), 439-457.

Mcilwraith, A. (2016). Information security and employee behaviour: how to reduce risk

through employee education, training and awareness, Routledge.

McNaughton, D. (1992). Banking Institutions in Developing Markets, Building Strong

Management and Responding to Change, Vol. 1,The World Bank, Washington D. C.

Moges, H. T., Dejaeger, K., Lemahieu, W., and Baesens, B. (2013). A multidimensional analysis

of data quality for credit risk management: New insights and challenges. Information &

Management, 50(1), 43-58.

Moges, H. T., Dejaeger, K., Lemahieu, W., and Baesens, B. (2013). A multidimensional analysis

of data quality for credit risk management: New insights and challenges. Information &

Management, 50(1), 43-58.

Mouton, J. (2005). How to succeed in your master’s and doctoral studies: South African guide

and resource book. Pretoria: Van Schaik.

Muhammed, J. K. and Garba, S. (2014). An Evaluation of the Effects of CRM on the

Profitability of Nigerian Banks. Journal of Modern Accounting and Auditing. 10(1), 104-

Mwangi, K. A. (2012). The effect of risk management practices on the Financial performance of

commercial banks in Kenya (Doctoral dissertation)

Mwangi, K. A. (2012). The effect of risk management practices on the Financial performance of

com-mercial banks in Kenya (Doctoral dissertation)

Mwisho, A.M. (2001). Basic lending conditions and procedures in commercial banks. The

Accountant. 13(3), 16-19.

| P a g e

Naceur, B.S. and Omran, M. (2008). The effects of bank regulations, competition, and financial

reforms on MENA banks’ profitability. Economic Research Forum Working Paper No.

Naceur, S. B. ( 2003). The Determinants of the Tunisian Banking Industry Profitability: Panel

Evidence .Universite Libre de Tunis, Tunisia.

Naomi,H. (2011). Risk and Record Management: Investigating risk and risk management in the

context of records and information management in electronic environment. Available at

http://www.Northumbria.openrepository.com [Accessed 25th July, 2020]

Ncube, M. and Senbet, L.W. (1997). “Perspectives on Financial Regulation and Liberalization in

Africa under Incentive and Asymmetric Information”. Journal of African Economies, 6,

pp. 29– 89.

Ncube, M. and Senbet, L.W. (1997). Perspectives on Financial Regulation and Liberalization in

Africa under Incentive and Asymmetric Information. Journal of African Economies, 6,

– 89.

Nsiah, R. R. (2014). An Examination of the Credit Management Practices of Rural Banks: A

Case Study of Asokore Rural Bank Limited. SSRN Electronic Journal.

doi:10.2139/ssrn.2494259

Nsiah, R. R. (2014). An Examination of the Credit Management Practices of Rural Banks: A

Case Study of Asokore Rural Bank Limited. SSRN Electronic Journal.

doi:10.2139/ssrn.2494259

Odonkor, T. A., Osei, K. A., Abor, J., and Adjasi, C. K. (2011). Bank risk and performance in

Ghana. International Journal of Financial Services Management, Inderscience Enterprises

Ltd, 5(2), 107-120.

Odonkor, T. A., Osei, K. A., Abor, J., and Adjasi, C. K. (2011). Bank risk and performance in

Ghana.

Ogboi, C., &Unuafe, O. K. (2013). Impact of credit risk management and capital adequacy on

the financial performance of commercial banks in Nigeria. Journal of Emerging Issues in

Economics, Finance and Banking,2(3), 703-717.

Okazaki, T. and Sawada, M. (2006). Effects of Bank Consolidation Promotion Policy:

Olson, D. & Zoubi, T. (2017). Convergence in bank performance for commercial and

Islamic banks during and after the Global Financial Crisis. The Quarterly Review of

Economics and Finance, 65, 71-87.

Onaolapo, A. R. (2012). Analysis Of Credit Risk Management Efficiency In Nigeria Commercial

Banking Sector,(2004-2009). Far East Journal of Marketing and Management, 2(4), 39-

Onyeagocha, S. (2001). Problems and Challenges of Nigerian Financial Institutions in Credit

Operations. Nigerian Banker, July to December, 2001.

Osuagwe, S. E. (2014). Determinants of Bank Profitability in Nigeria. International Journal of

Economics and Finance. 6(12). [Accessed 25th July, 2020].

Ouamar, D. (2013). How to implement counterparty credit risk requirements under Basel III: The

challenges. Journal of Risk Management in Financial Institutions, 6(3), 327-336.

Ouamar, D. (2013). How to implement counterparty credit risk requirements under Basel III: The

challenges. Journal of Risk Management in Financial Institutions, 6(3), 327-336.

Ouazad, A. & Rancière, R. (2016). Credit standards and segregation. Review of

Economics and Statistics, 98, 880-896.

| P a g e

Owojori, A. A., Akintoye, I. R., & Adidu, F. A. (2011). The challenge of risk management in

Nigerian banks in the post consolidation era. Journal of Accounting and Taxation. 3(2),

-23.

Pandey, I. M. (2008). Financial Management. New Delhi: Vikas Publishing House.

Pandey, I. M. (2008). Financial Management. New Delhi: Vikas Publishing House.

Paseda, O. (2017). Credit Risk Models: Lessons for Nigerian Banks.

Perera, A., Ralston, D., & Wickramanayake, J. (2014). Impact of off-balance sheet banking on

the bank lending channel of monetary transmission: Evidence from South Asia. Journal

of International Financial Markets, Institutions and Money, 29, 195-216. doi:

1016/j.intfin.2013.12.008.

Perera, A., Ralston, D., & Wickramanayake, J. (2014). Impact of off-balance sheet banking on

the bank lending channel of monetary transmission: Evidence from South Asia. Journal

of International Financial Markets, Institutions and Money, 29, 195-216. doi:

1016/j.intfin.2013.12.008.

Philippon, T. (2015). Has the US finance industry become less efficient? On the theory and

measurement of financial intermediation. American Economic Review, 105, 1408-38.

Poli, G.S. and Puri, S.K. (2013) Strategic Credit Management in Banks. Quarterly Journal of

Economics, 84(3), 488-500.

Poli, G.S. and Puri, S.K. (2013) Strategic Credit Management in Banks. Quarterly Journal of

Economics, 84(3), 488-500.

Poudel, R. P. S. (2012). The impact of credit risk management on financial performance of

commercial banks in Nepal. International Journal of arts and commerce, 1(5), 9-15.

Poudel, R. P. S. (2012). The impact of credit risk management on financial performance of

commercial banks in Nepal. International Journal of arts and commerce, 1(5), 9-15.

Psillaki, M. ,Tsolas, I.E. and Margaritis, D. (2010) . Evaluation of Credit Risk Based on Firm

Performance. European Journal of Operational Research. 201(3): 873-888

Psillaki, M. Tsolas I.E. and Margaritis, D. (2010).Evaluation of Credit Risk Based on Firm

Performance, European Journal of Operational Research” 201(3), 873-888.

Psillaki, M. Tsolas I.E. and Margaritis, D. (2010).Evaluation of Credit Risk Based on Firm

Performance, European Journal of Operational Research” 201(3): 873-888.

Rajaraman, I. & G. Vasishtha (2002). Non-performing loans of PSU banks: some panel results.

Economic and Political Weekly, 37 (5), 429-435.

Rajaraman, I. & G. Vasishtha (2002). Non-performing loans of PSU banks: some panel results.

Economic and Political Weekly, 37 (5), 429-435.

Saeed, M.S. and Zahid, N. (2016). The Impact of Credit Risk on Profitability of the

Commercial Banks. J Bus Fin Aff 5: 192. doi:10.4172/2167-0234.1000192

Sakyi, P. A., Ofoeda, I., Kyereboah–Coleman, A., & Abor, J. Y. (2014). Risk and performance

of non– bank financial institutions. International Journal of Financial Services

Management, 7(1), 19-35.

Sakyi, P. A., Ofoeda, I., Kyereboah–Coleman, A., & Abor, J. Y. (2014). Risk and performance

of non– bank financial institutions. International Journal of Financial Services

Management, 7(1), 19-35.

Sedlak, O., Jovin, S., Pejanović, R., Ćirić, Z. & Đođić, J. E. (2016). Access to finance for micro,

small and medium business units in Serbian agribusiness. Economics of Agriculture, 63,

| P a g e

Shrestha, D. (2014). The relationship between risk and capital in commercial banks. Journal of

Banking Review of Finance, 16(2), 439-457.

Shrestha, D. (2014). The relationship between risk and capital in commercial banks. Journal of

Banking Review of Finance, 16(2), 439-457.

Smith, L.D. and Lawrence, E. (1995). Forecasting losses on a liquidating long-term loan

portfolio. Institutions and Instruments, 4(5), 1995, 1-14.

Smith, L.D. and Lawrence, E. (1995). Forecasting losses on a liquidating long-term loan

portfolio. Institutions and Instruments, 4(5), 1995, 1-14.

Sommerville, R.A. and Taffler, R.J. (1995). Banker judgment versus formal forecasting models:

The case of country risk assessment. Journal of Banking and Finance, 19(2), 281-297.

Sommerville, R.A. and Taffler, R.J. (1995). Banker judgment versus formal forecasting models:

The case of country risk assessment. Journal of Banking and Finance, 19(2), 281-297.

Stulz, R. M. (1984). Optimal Hedging Policies”, the Journal of Financial and Quantitative

Analysis, 19(2),127-140.

Tawiah, A.A.(2018). Credit Management in Microfinance Institutions: A Case Study of Some

Selected Microfinance Institutions in the Ashanti Region of Ghana. Research Journal of

Finance and Accounting.9(2), 15-29.

Tawiah, A.A.(2018). Credit Management in Microfinance Institutions: A Case Study of Some

Selected Microfinance Institutions in the Ashanti Region of Ghana. Research Journal of

Finance and Accounting.9(2), 15-29.

Tetteh, F. L. (2012). Evaluation of credit risk management practices in Ghana commercial

bank limited. Unpublished master‟ s thesis). Kwame Nkrumah University of Science

and Technology, Kumasi.

Tetteh, L.F. (2012). Evaluation of Credit Risk Management Practices in Ghana Commercial

Bank Limited. Retrieved from http://www.emeraldinsight.com

Trujillo-Ponce, A., Samaniego-Medina, R., & Cardone-Riportella, C. (2014). Examining what

best explains corporate credit risk: accounting-based versus market-based models.

Journal of Business Economics and Management, 15(2), 253-276.

Trujillo-Ponce, A., Samaniego-Medina, R., & Cardone-Riportella, C. (2014). Examining what

best explains corporate credit risk: accounting-based versus market-based models.

Journal of Business Economics and Management, 15(2), 253-276.

Umbilical Cord. URL: http://www.alternativefinance. org.uk/rtf/rrbsmalhotra.rtf.

Wang, G. W., & Cox, R. A. (2013). Risk taking by US banks led to their failures. International

Journal of Financial Services Management, 6(1), 39-59.

Wang, G. W., & Cox, R. A. (2013). Risk taking by US banks led to their failures. International

Journal of Financial Services Management, 6(1), 39-59.

Weber, O., Fenchel, M. & Scholz, R. W. (2008). Empirical analysis of the integration of

environmental risks into the credit risk management process of European banks.

Business Strategy and the Environment, 17, 149-159.

Whitaker, R. B. (1999). The early stages of financial distress. Journal of Economics and

Finance, 23(2), 123-132.

Wruck, K. H. (1990). Financial distress, reorganization, and organizational efficiency. Journal of

financial economics, 27(2), 419-444.

Yaron, J., Benjamin, M. and Chariotonenko, S. (1998). Promoting efficient rural financial

intermediation’’, World Bank Research Observer. 13(2), 147-70.

| P a g e

Zaman, H. (2004).The Scaling-up of Microfinance in Bangladesh: Determinants, Impact,

and Lessons’’, Policy Research Working Paper 3398, World Bank, Washington DC.

Downloads

Published

2022-03-01

Issue

Section

Articles

How to Cite

The impact of credit risk on financial performance: Evidence from rural and community banks in Ghana. (2022). Hybrid Journal of Business and Finance, 3(1). https://royalliteglobal.com/hjbf/article/view/740