ABSTRACT
It would be hard, if not impossible to overstress the importance of
agriculture in the growth and development of Ghana's economy. Despite
our concentrated efforts at industrialization, Ghana, like other African
states, remains predominantly an agrarian society. Yet, despite
agriculture's strategic role in the performance of the Ghanaian economy,
financial institutions (especially commercial banks) have always shown a
marked reluctance to plough funds into increasing the production and
marketing of food, as demonstrated by the amount of credit extended to
the agrtcuItural sector. It is argued by Commercial banks that the
agricultural sector is characterised by a greater risk vis-a-vis other sectors
of the economy. Uling risk and statistical analyses as employed by Okorie
(1985) in a similar work, the study presents empirical evidence to refute
this assertion. It concludes in particular that the risk characterising lending
to the agricultural sector is not significantly higher than that identified with
the other eectors of the Ghanaian economy ·during the years under review.
And generally. that the risk elements of the entire economy have declined
subaIIIntiaIIy for the three primary commercial banks, since the
implementation of FINSAP. The study therefore recommends that
~$~:;eamrnerciaI banks should increase their investment in the agricultural
'~. which will pfOWide .'1:JedrOCk to support the country's programme of
I I: raM ,If.,owlh.
ADOO, S (2021). RISK AND PRIMARY COMMERCIAL LENDING IN GHANA. Afribary. Retrieved from https://afribary.com/works/risk-and-primary-commercial-lending-in-ghana
ADOO, SAMPSON "RISK AND PRIMARY COMMERCIAL LENDING IN GHANA" Afribary. Afribary, 30 Mar. 2021, https://afribary.com/works/risk-and-primary-commercial-lending-in-ghana. Accessed 22 Nov. 2024.
ADOO, SAMPSON . "RISK AND PRIMARY COMMERCIAL LENDING IN GHANA". Afribary, Afribary, 30 Mar. 2021. Web. 22 Nov. 2024. < https://afribary.com/works/risk-and-primary-commercial-lending-in-ghana >.
ADOO, SAMPSON . "RISK AND PRIMARY COMMERCIAL LENDING IN GHANA" Afribary (2021). Accessed November 22, 2024. https://afribary.com/works/risk-and-primary-commercial-lending-in-ghana