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The Role of Commercial Bank in Financing Small Scale Industries

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  • Ruth Asantewaa Owusu

    (Saint Mary’s University, 923 Robie Street, Halifax Nova Scotia, Canada)

Abstract

Bank finance has been found as an important source of funds for most firms in Ghana. The study assessed the impact of GCB SME LOAN on the activities of Small Scale Industries. The study used primary data which were designed and administered to SMEs customers of GCB and staff of GCB. A sample size of 170 made up of 20 staff of GCB bank and 150 owners of SME customers who deal with the bank and have benefited from the SME LOAN SUITE. The study concluded that with the use of GCB SME LOAN, there has been improvement in the profits of both the customers and bank. Also, the study identified four main challenges which were; increased in the amount of money, reduce interest rate, advertisement and extend the period of bridge loan that militate against the GCB SME LOAN of GCB bank. It was recommended that since GCB bank is contributing more to SMEs, they should give in their best to increase the amount of the loan and to extend the period of bridge loan to help boost their outreach.

Suggested Citation

  • Ruth Asantewaa Owusu, 2018. "The Role of Commercial Bank in Financing Small Scale Industries," RAIS Collective Volume – Economic Science 05, Research Association for Interdisciplinary Studies.
    • Handle: RePEc:smo:rpaper:05
    as

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    References listed on IDEAS

    as
    1. Joshua Abor, 2005. "The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 6(5), pages 438-445, December.
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    More about this item

    Keywords

    SMEs; Economic Development; Bank finance;
    All these keywords.

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