Commercial Banks In Ghana Research Articles

Relationship between Compensation and Employee Productivity

Labour unrest in the form of strike actions in both public and private corporate organizations underscore the importance employees attach to the issue of compensation. As a result, the human resource functions of many corporate organizations are challenged to develop and implement effective compensation schemes which will lead to the achievement of organizational goals. This study seeks to examine the relationship between compensation and productivity in the banking industry in Ghana. Using case study approach, a descriptive survey was carried out to collect data from employees of Ghana Commercial Bank in the Greater Accra Region of Ghana. Data was analysed in terms of descriptive statistics. Pearson chi square was used to test the significance of relationship between employee compensation and productivity. The results indicated a significant relationship between compensation and productivity.

Analysis of the Impact of Globalization and Capital Market Returns on the Ghana Stock Exchange

After independence in 1957, Ghana’s economy was characterized by a massive involvement of the state in almost every sector of the economy, which resulted in the public sector completely dominating production activities and formal employment. By the early 1980s, the economy had witnessed a long period of economic decline that manifested itself in low or negative GDP (Gross Domestic Product) growth, falling export revenue, and deteriorating infrastructure. Additionally, most of the state enterprises were faced with poor financial performance and low productivity culminating in increasing the burden of subsidy costs for government.The challenge faced by Ghana, like other sub-Saharan African countries, prompted the search for renewed economic strategy that would ensure economic growth necessary to reverse the rising unemployment rates. There were also efforts by successive governments to enforce efficiency and productivity in the state enterprises, as well as the wider financial and capital markets. With these objectives in view, the Government of Ghana launched an Economic Recovery Program (ERP) in 1983 aimed at reversing a protracted period of serious economic decline characterized by lax financial management, inflation rates well over 100 percent, and extensive government involvement in the economy. The policies included fiscal and monetary restraint, exchange rate adjustment/devaluation, trade liberalization, divestiture of state-owned enterprises, and private sector promotion. With the implementation of the economic recovery program, Ghana’s economy was poised to embrace globalization with the increased interaction with other economies, which opened the economy to greater and freer external trade and capital inflows. As part of the globalization efforts, the Ghana Stock Exchange (GSE) was incorporated in July 1989, and was subsequently recognized as an authorized stock exchange in October 1990 under the Stock Exchange Act of 1971 (Act 384). One of the main objectives of the Ghana Stock Exchange is to provide the facilities and framework to the public for the purchase and sales of bonds, stocks, shares, and other securities. Since the inception of the Exchange, some significant developments have taken place that has resulted in huge steps towards the liberalization or globalization of the stock market in Ghana. Key among them is the decision by the government to off load its shares in certain strategic state enterprises and banks, including Ashanti Goldfields Ltd. and Ghana Commercial Bank, through the Exchange. Additionally, the Exchange in 1993 opened the market to both non-resident Ghanaians and foreigners, enabling them to invest directly without prior approval. These actions, among others, were recognized by many as an opportunity to attract top rated foreign institutional buyers, which would add a big boost to the development of the stock market in Ghana.With increased efforts still being made by the Ghana Stock Exchange to further open the stock market to the global market, there is the need to assess the effect globalization has had on the stock market since its inception. Thus, after almost two decades of operation by the Ghana Stock Exchange, the issue then arises as to whether the stock market has indeed benefited from the effects of globalization. This study, thus, seeks to evaluate the development of the stock market in Ghana from 1990 to 2010, and assesses the extent to which opening up the market to the global markets has impacted on the development of key stock market indicators.

Factors Influencing the Retention of Customers of Ghana Commercial Bank within the Agona Swedru Municipality

Customer retention is an important element of any banking strategy in today’s increasingly competitive environment. This study examined the impact of retention factors that influence consumers’ decisions to stay with Ghana Commercial Bank within the Agona Swedru Municipal area. The descriptive survey design was used for the research. Simple random sampling and self administered questionnaires were utilised to obtained data from 480 customers of the bank. Correlation and regression techniques were used to examine the relationships between customer satisfaction, service quality, customer trust, customer commitment, switching barrier factors and customer retention. The results revealed that on the whole, switching barrier emerged as the most significant factor influencing customer retention. This was followed by customer commitment and customer trust. The study recommends that management of the bank should pay attention to customer commitment by investing more into customer relationship marketing strategies that can increase customers’ dependency and inhibit switching.

Improving Customer Service in the Banking Industry-Case of Ghana Commercial Bank (GCB)-Ghana

Customer service has become so vital and significant to consider especially in the financial business sector whether locally or globally. As banks continue to provide an increasing number of financial services and products, they face the challenge of integrating these disparate systems into a coherent, efficient infrastructure, while delivering the highest level of customer service and convenience without exposing their customers to the bank’s internal system integration problems. However, banks in Ghana especially Ghana Commercial Bank (GCB) needed to improve and formalize its customer service and public relations programs. A descriptive research method was used to gather data from the respective target population. Customer service at GCB from the customers’ perspective is not satisfactory but has led to the increase in number of new customers, maintenance of existing customer and increase in profitability among others.

Be Careful About the Menace of the Banks and Microfinance Companies

Currently, according to the Ghana Banking Survey 2010 by PriceWaterHouseCoopers, there are twenty six (26) registered banks with over 740 branches operating in the country offering several products designed to attract the average Ghanaian (with more in the pipeline because of the oil flow). Some years ago (may be 10 years or more), there were very few banks in the country with their products mostly designed towards the elite few. It was a common thing to see very long and winding queues extending several kilometres outside the banking halls of most of these banks. Especially the Ghana Commercial Bank (GCB), the Social Security Bank (now SG-SSB) and Agricultural Development Bank (ADB), which are mostly state-owned at those times. In Ghana as in most parts of Africa, public sector workers receive their pay usually at the end of the month through the banks. And with the low bank charges and also being state owned GCB, SSB and ADB were usually very crowded at the end of every month.

The Competitiveness of Commercial Banks in Ghana

The paper empirically investigates the degree of bank competition and intermediation efficiency in Ghana. The evidence obtained suggests a non-competitive market structure in the Ghanaian banking system, which hampers financial intermediation. The study also finds that Ghanaian banks are monopolistically competitive. It is argued that the structure, as well as the other markets characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system. Further, it is argued that policies that encourage and stimulate greater consolidation in the financial sector would go a long way to enhance competition among banks and improve efficiency and profitability.

Doing well by doing good – marketing strategy to help the poor: The case of commercial banks in Ghana

Access to capital markets and loans continues to be difficult for the poor in Ghana, even as the economic conditions improve and banks realize record profits. The insistence of commercial banks on collaterals as a loan requirement, to a large extent, disqualifies the poor in Ghana. Using a review of the literature, interviews with bankers, chiefs, a queen mother and the poor, and drawing on the theories of social marketing, the broadening of the marketing concept and the content analysis research technique, this study proposes a framework for a marketing strategy that uses the local social structures in lieu of collaterals that commercial banks in Ghana could use to extend loans to the poor.