Ranking The 5C’s Of Credit Analysis: Evidence From Ghana Banking Industry

Williams Kwasi Peprah, Albert Agyei, Evans Oteng

Research output: Contribution to journalArticlepeer-review

Abstract

This research study was to find out how banks in Ghana rank the 5C’s in the evaluation of loan applicants. Based on the Yamane (1967) statistical formula among 35 banks in Ghana, 32 banks credit departments responded to this ranking survey. The results indicated in general that banks in Ghana rank from the order of importance: Capacity, Character, Collateral, Condition and Capital. However, foreign-controlled banks ranked Condition as third and Collateral as fourth and domestic-controlled banks ranked Collateral and Capital the same as the least.
Original languageAmerican English
Pages (from-to)78-80
JournalInternational Journal of Innovative Research and Advanced Studies
Volume4
Issue number9
StatePublished - Sep 2017
Externally publishedYes

Keywords

  • Capacity
  • Character
  • Collateral
  • Condition
  • Capital

Disciplines

  • Finance and Financial Management

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