Determinants of Group Lending in the Credit Union Industry in Ghana |
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Authors: | Michael Adusei Sarpong Appiah |
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Affiliation: | 1. Department of Accounting and Finance, KNUST School of Business , Kwame Nkrumah University of Science and Technology , Kumasi, Ghana madusei10@yahoo.com;3. Department of Marketing , Christian Service University College , Kumasi, Ghana |
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Abstract: | Using binomial logistic analysis, the authors analyze data on 222 credit unions (CUs) drawn from the CU industry in Ghana in the 2008 financial year and find that CUs that have larger size of management, lower repayment performance, no delinquent loans over 30 days, better liquidity positions, and have been in the CU business for a long time, are more likely to adopt group lending. The findings of this study also show that the gender structure of a CU does not influence its group lending decision. The authors argue that CUs adopt group lending to improve their loan repayment performance, consistent with the literature. |
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Keywords: | credit union group lending management microfinance repayment |
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