![]() ![]() Legitimate banks were developed from the indenture servitude that was rampant by individuals known as moneylenders. Written loan contracts from Mesopotamia that are more than 3,000 years old showed the development of a credit system that included the concept of interest (Carlin, & Mayer. The roots of lending can be traced back to the roots of civilization itself. Keywords: Loan default, Financial performance INTRODUCTION 1.0 Background to the Study It is recommended that the following measures should be implemented to reduce the rate of loan default good credit structuring, consistent monitoring, sound credit risk policies and standards, quality analysis, well trained staff, good corporate governance system, independent credit assessment, rescheduling and provision of additional funds. Again, it was realized that loan default has a negative impact on profitability. The major cause of loan default according to the findings of this study was decrease in demand of goods and service (16.1%) sold by the loan clients. The study also found that SME clients (49.5%) defaults more than agric, personal and salary loan clients. It was realized that the delays in loan approval, poor management, poor credit appraisal and diversion of loans are the main determinants of loan default in Fidelity bank. The data was collected from four branches of Fidelity Bank in the Brong Ahafo Region of Ghana. Simple random technique was used to select 120 loan clients and a purposive sampling was used to select a credit staff. The primary data was collected through a well structured questionnaire. In achieving the research objectives primary and secondary data was used. The study employed quantitative and qualitative research techniques as the research design. The main purpose of this study was to examine the determinants of loan default and its effects on financial performance of commercial banks in Ghana by using Fidelity Bank Limited as a case study. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 2.2.2.4 Adoption of a sound internal lending policyģ.5 Model Specification and Estimation TechniqueĪNALYSIS OF DATA AND PRESENTATION OF RESULTSĤ.1 Demographic Characteristics of RespondentsĤ.2 Determinants of Loan Default in Fidelity Bank.Ĥ.3 Type of Client who normally default in Fidelity BankĤ.5 Impact of Loan Default on ProfitabilityĤ.6 Rate of Default in relation to sectors of the economy. ![]()
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