The Effect of Risk Management in the Banking Industry in Ghana: A Case Study of Asokore Rural Bank Ltd.

Abstract

Banks, as the most important financial institutions, have a determinant role in circulating currency and wealth of the society and enjoy a special position in financial system. Therefore, the desired and effective performance of banks can create important effects on the development of different economic sectors and increase in the quantitative levels of the output. This study attempts to examine the effect of risk management in banking industry using panel of data related to rural bank in Ghana during the years 2012 to 2013. In the estimated research model. The results of research show that the variables of bank's size, bank's asset, gross domestic product and inflation will cause to improve the performance of banks while credit risk and liquidity risk will cause to weaken the performance of bank.