PRINCIPLES AND PRACTICE OF LENDING IN THE BANKING SECTOR: A CASE STUDY OF SOME SELECTED BANKS IN GHANA

This study examined the principles and practice of lending in the banking sector of some selected banks. It looked at the perceptions of respondents in these selected banks regarding principles and practice of lending. A total number of twenty-five (25) questionnaires were administered to the credit department and some staff of five (5) selected banks within the Accra Metropolis. The descriptive statistics was used to draw conclusions on the opinions sampled from the respondents. The research found that the selected banks used various types of lending models but the commonly used model was the CAMPARI model. Banks also followed and ensured that laid down principles and practice of lending in granting loans were enforced. Adhering to these principles and practices of giving out loans to customers, helped the banks to increase its profitability and thereby reducing the extent of default.