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IJSTR >> Volume 4 - Issue 8, August 2015 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Regression And Time Series Analysis Of Loan Default At Minescho Cooperative Credit Union, Tarkwa

[Full Text]



Otoo, H., Takyi Appiah, S., Wiah, E. N.



Keywords: Loan, forecasting, Stationary, differencing, partial autocorrelation, cyclic



Abstract: Lending in the form of loans is a principal business activity for banks, credit unions and other financial institutions. This forms a substantial amount of the bank’s assets. However, when these loans are defaulted, it tends to have serious effects on the financial institutions. This study sought to determine the trend and forecast loan default at Minescho CreditUnion, Tarkwa. A secondary data from the Credit Union was analyzed using Regression Analysis and the Box-Jenkins method of Time Series. From the Regression Analysis, there was a moderately strong relationship between the amount of loan default and time. Also the amount of loan default had an increasing trend. The two years forecast of the amount of loan default oscillated initially and remained constant from 2016 onwards.



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