Problem loans management practices : Ecobank Ghana Limited as a case study
par Katoh Hamadou Kone
Centre Africain d'Etudes Supérieures en Gestion - MBA in Banking and Finance 2004
AFRICAN CENTER FOR ADVANCED STUDIES IN MANAGEMENT
Ecobank Ghana Limited
PROBLEM LOANS MANAGEMENT PRACTICES:
ECOBANK GHANA LIMITED AS A CASE STUDY
Katoh Hamadou KONE
Being a dissertation submitted in partial fulfilment of the
requirements for the award of the
MBA in Banking and Finance
To my Mother, for her tireless support
May the Almighty God bless and reward You for All.
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
RESUME DE L'ETUDE 3
CHAPTER 1: INTRODUCTION 5
CHAPTER 2: LITERATURE REVIEW 11
I. Basic theoretical framework 11
IV. «Problem loans», «Bad loans» and «Non-performing loans»: definitions and
recommended practices 22
V. Soundness problem loans management criteria 27
3. Remedial management 28
CHAPTER 3: CREDIT RISK MANAGEMENT PROCESSES 30
I. Credit management process 30
II. Problem loans management 32
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 36
I. Data collection 36
II. Data analysis methodology 39
III. Outcome of data collection 40
IV. Data analysis and interpretation 41
CHAPTER 5: RECOMMENDATIONS AND CONCLUSION 43
I. Pre-lending recommendations 43
6. Companies dealing with governments 45
IV. Conclusion 47
Before starting with the study, allow me to thank people and organizations without whom this
study may not be completed.
My first words go to international institutions that created and are still supporting the MBA in Banking and Finance, especially the African Capacity Building Foundation that granted me a scholarship to attend the Program. May you keep strong to continue sustaining African development through training programs and others.
Special thanks also to the academic staff for providing us with up to date knowledge in banking and finance and the project manager and his short and dynamic team.
The Ecobank Group and particularly its subsidiary of Ghana, Ecobank Ghana Limited, played
a key role in the completion of this study. I thank the bank for its hospitality during those three months at Trade Finance and Risk Management Departments and wish you to remain a key role player in the African financial environment.
I cannot forget Mr. Theophilus Aryee, Director of my dissertation for his effective commitment to the work. To him I will say «I learnt a lot from you and expect to do more».
I end by my large family that I would like to thank for their moral and financial support. I
pray for the time to allow all of you to get the proceeds of your investment.
vi MBA in Banking and Finance