Giving out loans, the best way out case study: Atwima Kwanwuma rural bank, Ashanti Region of Ghana

Abstract

This paper is designed to model a linear programming problem and to apply optimization tech-niques to the operations of real life problems of banks, giving out loans to different clientele. The main objective of this paper is to determine the maximum net returns, which comprises the difference between the revenue from interest and lost funds due to had debts. The bad debts are not re-coverable both as principal and interest, thus reducing the total revenue. It is also to use the optintum solution to determine among the different clientele, the ones that are recommended and the ones that are least attracted. Atwima Kwanwuma Rural Bank was chosen for the study.