The Department of Finance holds a Guest Lecture on Loan Portfolio and Credit Management
On Monday, 21st November 2023, Mr. Michael Maccarthy Adjinu, Treasurer at GB Foods Ghana Ltd, delivered a lecture on the theme, “Loan Portfolio and Credit Management” at the University of Ghana Business School (UGBS). The lecture provided students who are undertaking Bank Management course the opportunity to gain more insights from a practitioner perspective.
Mr. Adjinu, in his lecture, highlighted the importance of funds for any business, with banks being vital in providing these loans. Stressing that the loans that banks extend to clients is pooled from the deposits mobilised by the bank. He explained that the amount of loan a person or a business receives determines the risk appetite of the bank and thoroughness of the bank's evaluation process. He further added that banks need to make profits to survive, hence they rely on the loan applicant ’s financial history to measure their probability of repaying their loans.
Concluding his lecture, Mr. Adjinu underscored the responsibility of borrowers to stick to loan terms, addressing concerns about high non-repayment rates in the banking industry in Ghana and the risk it possesses to the entire financial intermediation. “To secure loans, banks may use assets like vehicles or machinery as collateral. If the borrower can't repay, they can exercise a lien on these assets to recover their funds. Loans form a significant part of a bank's operations, and banks aim to manage risks by diversifying across different sectors,” he explained.
Giving a brief remark, Dr. Benjamin Amoah, a Senior Lecturer in the Department of Finance at UGBS and facilitator for Bank Management course further stressed that while business environment in Ghana is promising, young entrepreneurs face challenges securing enough start- up funds. Dr. Amoah assured students that joining companies like GB Foods Ghana Ltd is advantageous; it's a place to learn, advance their careers, and develop themselves.
The event ended with a Question-and-Answer session that helped students clarify additional areas of bank loan management.