Abstract

PurposeThe purpose of this study is to assess the impact of corporate governance variables on the quality of bank loan portfolios.Design/methodology/approachThe study used a panel-corrected standard errors estimation model with the most recent 11-year data from 2006 to 2016 on selected Ghanaian banks.FindingsThe findings indicate that corporate governance is relevant within the banking sector and plays a key role in improving loan quality. Having a large board with the attendant pool of expertize, boards with mostly non-executive members and duality of the CEO-board chair can be harnessed to improve bank loan quality. Female participation on boards seems to detract from good performance, creating the impression of tokenism in the Ghanaian banking sector.Originality/valueThe study has important implications for board construction within the banking sector and the discourse on bank asset quality.

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