Tag Archives: financial institutions

Corporate Farud: Causes, Effects and Deterence on Financial Institutions in Ghana (Review Completed - Accepted)

The purpose of the study is to find out the causes, effects and deterrence and prevention of corporate fraud in financial institution of Ghana. In particular, we examine the effects of fraud on firm’s financial performance. A cross sectional model was used to find the effects of financial institutions fraud on financial performance. It was revealed that, fraud has a significant negative effects on financial performance i.e. Return on Assets of financial institutions in Ghana. However, structured questionnaires was also used to find out the perception of Accountants, Auditors and management on the main causes of banking fraud and  deterrence and prevention methods in curbing the menace. It was revealed that weaker internal control, inadequate training and fraud policies, failed Documents and proper Remuneration are the strong arsenal that causes fraud in financial institutions of Ghana. Moreover, organizational use of password protection, Good Remuneration, Employees background Checks, adequate fraud training were perceived as the most deterrence and prevention method in fighting fraud in financial institutions. Our results have practical implication for management, accountants, Auditors and all stakeholders in financial institutions on the effects of fraud on firms financial performance and in mounting fool proof methods in curbing this canker and reducing it to bearest minimum. The study contributes deterrence and prevention methods aim at improving it effectiveness in reducing fraud in Ghana and West Africa.

Keywords: Fraud, Ghana, Return on Assets, deterrence and prevention, financial institutions

The Necessity of Setting up A Banking Commission for the Protection of Financial Consumers in Republic of Congo -Lesson from Chinese Banking Commission Regulatory (Published)

Since the subprime crisis of 2008, financial consumer protection has become a hot topic all over the world. This is how, in certain countries, governments are still looking for an appropriated mechanism to improve the protection of financial consumers. It is the case of the Republic of Congo where financial consumers are defenseless. They are victims of bad practices from financial institutions. The embezzlements of depositor funds is currently a common phenomenon due to the shortcomings encountered by the Banking Commission of Central Africa. This situation has created a confidence crisis between financial consumers and financial institutions. Nowadays, people are keeping money in households and using informal means to get financial services. Which is causing significant economic and social consequences. This is how we have oriented our research study on the legal mechanisms established by the Chinese authorities through the China’s Banking Commission Regulatory set-up in 2003. In this paper, the authors present the vulnerable state of financial consumers in Congo and demonstrate the inefficiency of the Banking Commission of Central Africa, show the progresses made by the China Banking Commission Regulatory, and recommend the setting-up of such a commission in Republic of Congo.

Keywords: Consumer, Financial Consumers, Protection, financial institutions

The Necessity of Setting up A Banking Commission for the Protection of Financial Consumers in Republic of Congo -Lesson from Chinese Banking Commission Regulatory (Published)

Since the subprime crisis of 2008, financial consumer protection has become a hot topic all over the world. This is how, in certain countries, governments are still looking for an appropriated mechanism to improve the protection of financial consumers. It is the case of the Republic of Congo where financial consumers are defenseless. They are victims of bad practices from financial institutions. The embezzlements of depositor funds is currently a common phenomenon due to the shortcomings encountered by the Banking Commission of Central Africa. This situation has created a confidence crisis between financial consumers and financial institutions. Nowadays, people are keeping money in households and using informal means to get financial services. Which is causing significant social and economic consequences. This is how we have oriented our research study on the legal mechanisms established by the Chinese authorities through the China’s Banking Commission Regulatory set-up in 2003. In this paper, the authors present the vulnerable state of financial consumers in Congo, and demonstrate the inefficiency of the Banking Commission of Central Africa, show the progresses made by the China Banking Commission Regulatory, and recommend the setting-up of such a commission in Republic of Congo

Keywords: Consumer, Financial Consumers, Protection, financial institutions

How do financial institutions in Pakistan operate on corporate social responsibility standards? (Published)

This article has been based on the analysis of CSR practices of financial institutions in Pakistan and their evaluation on the performance of organizations. The objectives of this article are: a) analyzing the literature regarding CSR practices in the financial industry, b) evaluating the CSR practices followed by organizations in financial industry in Pakistan, c) identifying the perceptions of  customers and general public towards CSR practices of organizations in Pakistan and d) proposing suggestions to organizations in Pakistan for improving their CSR practices. For evaluating the objectives of study, primary data has been used in this study. For this purpose, the researcher targeted a sample of 170 employees of financial institutions from Rawalpindi.  This sample was selected through random sampling technique. 152 appropriately filled questionnaires were obtained and it resulted in 89.41% response rate. Through statistical analysis of study, it was found that environmentally sustainable practices, philanthropic practices and stakeholder relations are positively related with the organizational performance. On the other hand, this study also concluded that legal compliance has not been related with the organizational performance. This article concluded that CSR practices do influence organizational performance in Pakistan’s financial industry. This study provided a foundation to future researchers to take a large sample of organizations and expand scope of the current study

Keywords: Corporate Social Responsibility, Pakistan operate, Standards, financial institutions

THE CHALLENGES BEHIND SMES’ ACCESS TO DEBTS FINANCING IN THE GHANAIAN FINANCIAL MARKET (Published)

Despite the fact that financial institutions have identified the SME sector as a fast growing sector in the country, there are several constraints serving as bottlenecks to SMEs in accessing finance from financial institutions. This study examines difficulties SMEs face in accessing loan, difficulties financial institutions face in lending to SMEs and the impact of loan on the profitability of SMEs. In conducting this study, questionnaires were administered to SMEs. Credit officers in the selected banks were interviewed. The following major findings came to the fore; Interest rate on loan to the SMEs is extremely high, Repayment periods on loans to SMEs are too short making it very difficult to embark on any developmental or expansion projects, most SMEs, do not understand terms and conditions, and also oblivious of the interpretation of the percentage charged on the loans. It was also found out that small business owners normally give false information when accessing loan from financial institutions. The study suggested that government should institute some form of tax incentives to financial institutions involved in SME lending and formulate regulatory laws to help loans recovery. SME associations must be established to unite them and serve as guarantors whenever loans are accessed.

Keywords: SME, debt financing, financial institutions