Relationship between Savings and Credit in Rural Banks with Specific Reference to Ghana
Jacob Donkor, Frank Agyemang Duah

Abstract
During the last years the banking business has come under considerable competitive pressure and bank managers often express concern regarding its savings and credits vis-à-vis other activities. This paper examined the relationship between savings and credits at Atwima Kwanwoma rural bank from 2004 to 2011 financial years. The researchers employed both financial and non-financial analysis. The bank charges different rate of interest for various customers on the basis of risk and nature of loan. Empirical results from estimating the model on 2004 to 2011 data from the bank's financial statement indicates that total deposits has been increased from GH¢8.692 million to GH¢152.65 million respectively. Also the analysis in the study period indicates that credits has increased from GH¢1.559 million in 2004 to GH¢110.42 million in 2011. Regression analysis of the findings established that there is a positive relationship between total deposits and credits. This shows that as total deposits increased the amount to lend also increased.

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