Background Of Microfinance In Ghana

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In Ghana, the microfinance sector has a strong savings orientation and a much greater role of licensed institutions relative to non-governmental organization (NGOs) than in many nations. Banking institutions, in particular the Rural and Community Banks (RCBs), and non-banking institutions, the savings and loans companies (S&Ls), account for most microfinance activities in the country. Microfinance was defined by Scheriner and Colombet (2001. P. 339) as “the attempt to improve access to small deposits and small loans for poor households neglected by banks”.
Microfinance involves the provisions of financial services such as savings, loans and insurance to poor people living in both urban and rural settlements who are unable to obtain such services from the formal financial sector (Banks).

The Microfinance revolution has changed attitudes towards helping the poor in Ghana and in some other countries. The aim of microfinancing is to provide substantial flows of credit, often to very low-income groups or households, who would normally be excluded from conventional financial institutions. This chapter therefore gives the background of the study, a statement of the problem, research objectives, research questions, scope and limitations of the study, the significance of the study and organization of the study.

1.1 Background of the Study

The global poverty crises and resulting human suffering, environmental degradation and many other societal ills are hastening for the search of scalable anti-poverty approaches. These deplorable conditions are the reasons behind the increasing interest in microcredit and more broadly, microfinance. As a matter of fact, gatherings such as the Microcredit Summit, global support through the United ...

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...le who want to research into a similar field in the future would also find this study as a good source from which they can tap information.

1.7 Organization of the study
The study will be divided into five chapters. Chapter one is the general introduction and background of the topic. It will further examine the statement of the problem, objectives, and the scope, significance of the study and the organization of the study. Chapter two focuses on the literature review relevant to the topic
Chapter three is the methodology that will be used in conducting the study, which includes the sample and sample techniques, data collection instruments. This chapter will also give a brief historical background of the unit of analysis. Chapter four will analyze the data collected from respondents. Chapter five will present the summary, conclusion and recommendation of the study.

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