Performance Of Banks In Ghana Research Articles

The Effect of Mergers and Acquisitions on Bank Performance in Ghana

The study examined the consequence of mergers and acquisition on bank performance in Ghana. Specifically, the study investigated the effect of mergers and acquisition on net profit margin, return on assets and return on equity of commercial banks in Ghana. Data from the annual reports of eight (8) commercial banks over a 10-year period (2009-2018) were collected and analysed by the use of descriptive statistics, correlation analysis, and regression analysis. The findings revealed a negative and significant association between mergers and acquisition and net profit margin. There existed a positive but statistically insignificant relationship between mergers and acquisition and return on assets of commercial banks in Ghana. Further, there was a negative but statistically insignificant relationship between mergers and acquisition and return on equity. The results, however, could not establish a conclusive evidence of the impact of mergers and acquisition on bank performance, implying that mergers and acquisition might not necessarily improve bank financial performance.

Using human resource information systems as tools to enhance the performance of banks in Ghana

This paper examined the use of human resource information (HRI) systems and organisational performance in the banking industry in Ghana, using a selected bank as a case. The study employed a mixed method approach and involved 103 employees and ten key informants of the selected bank for primary data. Content analysis was used to analyse qualitative data while Statistical Product and Service Solutions version 21 was used to analyse quantitative data. The study revealed that the types of HRI systems being employed by the bank were administrative, tactical and strategic. The benefits of using HRI systems included the ability to store and retrieve accurate employee information faster, better succession planning and effective decision making. There was a strong positive relationship between HRI systems adoption and the bank's performance in terms of efficiency, effectiveness, innovation and market share. This is a lesson for other banks to emulate to enhance their performance.

Effect of Internal Control Environment on Financial Performance of Banks In Ghana

Effect of Internal Control Environment on Financial Performance of Banks In Ghana

Using human resource information systems as tools to enhance the performance of banks in Ghana

This paper examined the use of human resource information (HRI) systems and organisational performance in the banking industry in Ghana, using a selected bank as a case. The study employed a mixed method approach and involved 103 employees and ten key informants of the selected bank for primary data. Content analysis was used to analyse qualitative data while Statistical Product and Service Solutions version 21 was used to analyse quantitative data. The study revealed that the types of HRI systems being employed by the bank were administrative, tactical and strategic. The benefits of using HRI systems included the ability to store and retrieve accurate employee information faster, better succession planning and effective decision making. There was a strong positive relationship between HRI systems adoption and the bank's performance in terms of efficiency, effectiveness, innovation and market share. This is a lesson for other banks to emulate to enhance their performance.

Capital Adequacy, Cost Income Ratio and Performance of Banks in Ghana

Capital Adequacy, Cost Income Ratio and Performance of Banks in Ghana

Impact of Financial Risk Indicators on Banks’ Financial Performance in Ghana

This research is to study the impact of some financial risk indicators on fifteen selected commercial banks’ in Ghana. The indication from the augmented Dickey-Fuller unit root test results show that the data series after first difference at the first order achieved stationarity. The analysis of the data revealed the existence of significant long run relationship between bank financial performance and the variables of financial risk in the banking sector. The granger causality test results reveal that there is unidirectional causality flowing from the variables of financial risk This suggest that the indicators of financial risk strongly and actively stimulate and improve the financial performance of banks in Ghana. The study recommends that bank managers should improve on the management of all the indicators of financial risk variables in order to improve on the achievement of the objective of the firm.

Related Party Transactions and Performance of Banks in Ghana

This study examines the impact of related party transactions on performance of banks in Ghana. Specifically, the study examines the effect of total related party transactions on firm performance as measured by Return on Assets (ROA). The study uses a sample of banking institutions listed on Ghana Stock Exchange (GSE)over the period 2013 and 2017. Out of the 9 listed banks, 7, representing 77.78% were used for this study and data was gathered from their annual reports. The data pulled out was processed and analysed by carrying out Fixed Effects regression based on the outcome of Hausman test using Statistical software package, STATA version 15. The study revealed that related party transactions has a significantly negative effect on firms’ performance. The research hypothesis is duly accepted and the study therefore provides evidence that the amount of related party transactions that a firm engages in can negatively affect its profitability. It is therefore prudent for practitioners to be careful of the kind of and the extent of related party transactions that they engage in. Regulators must also streamline dealings in relation to related party transactions and ensure that firms are closely monitored to reduce or guide related party transactions. Board size, leverage and firm size were also employed as control variables in this study and it was revealed that board size is positively related to performance but has no influence on the performance of firms. However, firm’s leverage, measured by total debt over total assets has a negative and statistically significant effect on performance. Leverage negatively affects firm performance possibly due to high interest rates common in developing economies such as Ghana. Lastly, the size of the banks measured by the natural log of total assets is negative and statistically related to ROA. The findings of this study supports the school of thought that, the larger the firm, the more the inefficiencies leading to diseconomies of scale. Listed banks in Ghana may not be taking advantage of their size to be more efficient and profitable and they have to look into their operational and related efficiency matters to become more profitable.

Exploring the effect of online banking on bank performance using data envelopment analysis

PurposeIncreased competition in the banking sector coupled with long queues in the banking hall has necessitated the introduction of internet banking among banks in Ghana. As a result, internet banking has attracted a great deal of attention from both academicians and practitioners. The purpose of this paper is to examine the effect of internet banking on the performance of banking institutions in Ghana.Design/methodology/approachIn total, 20 banks in Ghana were selected from the Bank of Ghana website for the study. The financial information about the banks’ operations was retrieved from the financial statements of the respective banks for the end of the year 2016. The data envelopment analysis-bootstrap approach with principal component analysis and cluster analysis was used to estimate 49 models.FindingsThe findings of the study indicated that the integration of internet banking into traditional banking methods has led to superior bank performance in Ghana. It was observed that while the independent application of internet banking as a strategy to raise performance was not yielding higher returns due to the low patronage of internet services among banking consumers, its integration with possible traditional methods is widely observed among the top performers in the banking industry.Practical implicationsTraditional banking methods, integrated banking service strategies and the internet banking service-oriented strategy emerged as the main banking strategies among the banks.Originality/valueExtant literature is quite silent on the effect of internet banking on bank performance in Africa. However, this paper is among the first significant attempts to examine the effect of internet banking on bank performance.

The Effect of Occupational Health and Safety Management on Performance in the Banking Sector, Ghana

A survey was conducted to investigate the impact of occupational health and safety measures (OHSMs) on the performance of Banks in Ghana. Questionnaires were administered to employees of various Banks in the country. Using a Likert scale, respondents were asked to assess the impact of OHSMs on the performance of their Banks. The reliability of the survey data collected was tested using Cronbach’s alpha. Subsequently, Pearson correlation and simple regression were used to understand the statistical relationships between variables in terms of the magnitude and the direction (positive or negative) and to determine the degree of variance among dependent and independent variables. Findings suggest that there was a slightly moderate positive correlation between OHSMs and performance of Banks. Although employees generally agreed that OHSMs were in practice, the measures should be improved and government should reinforce policies for the implementation of OHSMs and ensure compliance by the Banks.

Does Commercial Banks Presence Enhance Profitability in Ghana?

The last few decades have witnessed an increasing drive for bank presence across Ghana due to commercial banks appetite for increased deposit mobilization. Although bank presence is crucial in savings mobilization for economic growth and development, its relationship with the financial performance of the banks is unknown within the context of a developing economy. The current study therefore investigates the implications of banks presence on the financial performance of the commercial banks in Ghana, using data from 2007 to 2013. Panel regression is used for the estimation. Our findings show that increasing banks presence does not necessarily translate into profitability of the commercial banks. A plausible deduction from the results indicate that growth in bank presence (bank branches) cannot improve alternate distribution channels of banks operations due to the strong competition in the financial sector, cost of operations and low savings culture in Ghana. The results also reveal that market concentration, cost management, capital adequacy and activity mix contribute positively to the financial performance of commercial banks in Ghana but not credit risk and management quality. We also document that the macroeconomic environment has positive effects on the financial performance of commercial banks. Following the above, we recommend that commercial banks should pay critical attention to bank specific factors such as cost management and capital adequacy ratios. Moreover, managers of the economy should strive to create a conducive and stable environment to increase their penetration in Ghana.

Business intelligence systems and bank performance in Ghana: The balanced scorecard approach

Business intelligence (BI) systems has been widely publicised as providing immense benefits to organisations that have implemented it. Yet, very few studies have empirically evaluated these assertions theoretically. The main aim of this study is to empirically evaluate the impacts of adopting BI systems on organisational performance of banks. A conceptual model was developed using the balanced scorecard. Data were collected through hand-administered survey questionnaires from the universal banks in Ghana where 130 samples from executives were analysed through partial least squares structural equation modelling (PLS-SEM). The results indicate that BI Systems indeed have a positive significant effect on the learning and growth, internal process and customer performances of the banks. However, the findings proved that the adoption of BI systems does not directly lead to the financial performance of the banks, but rather through the indirect effects of learning and growth, internal process and customer performances thus confirming the core premise of the balanced scorecard. A major practical implication from the study is that vendors can capitalise on the findings to promote their BI products.

Accessing the Impact of Information and Communication Technology (ICT) On the Performance of Banks in Ghana: A Case Study of Ghana Commercial Bank Limited

The study sought to examine the impact of Information and Communication Technology (ICT) on the performance of Ghanaian banks with a case study at Ghana Commercial Bank Limited. Information and Communication Technology (ICT) is at the centre of this global change curve. The application of ICT concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness. The main objectives of the study were to assess the impact of ICT on the financial performance of Ghana Commercial Bank Limited (GCB), to find the contribution of ICT based products to customer satisfaction, to examine how ICT has helped reduce operational cost of GCB and to determine the effect of information technology on the liquidity of GCB. Qualitative data was collected using purposive sampling technique. SPSS was used in the descriptive analysis of one-hundred (100) administered interview guide and open-ended questionnaires. The study revealed that ICT Capital has accelerated growth in the bank. Also, ICT facilitated the absorption of high and medium skilled labour. This has a positive effect on the labour output at the bank. The study findings revealed that the bank's use of ICT also enabled the bank to offer a broad variety of services to customers, coordinate branch activities, and meet up with changes in government regulations and policies. The study observed by concluding that the bank's use of ICT has had an impact on the performance of the bank by way of increasing the bank profitability and also reducing the operational cost of the bank.

Multinational Subsidiary Performance: Evidence from the Ghanaian Banking Sector

The global economic volatility has given rise to diverse firm operational strategies including internationalization through subsidiary establishment. This has aroused the interest of scholars to the study of multinational firm performance. The study seeks to ascertain the factors that contribute to the performance of multinational subsidiary banks in Ghana. Using an unbalanced random effects panel regression estimation following the Hausman specification test, the study found that increasing bank size does not necessarily lead to performance. As it stands, the Multinational Subsidiary (MNS) banks under perform as they increase in size. It was further noted that the banks are inefficient and so shift their costs and risks to customers in the form of high interest charges on credit. Notwithstanding, it appears that older MNSs perform better than the relatively younger ones. The study found that leadership origin does not have any significant impact on bank performance. Evidence was, however, found about the significant influence of the host country economic conditions on MNS performance.

The Impact of Information Systems Investment on Bank Performance in Ghana

The advancement of technology is a necessity of the current era. Businesses need to adopt and embrace new technologies to provide excellent business operations and services to their customers. This study looks at the impact of information systems investment on bank performance in Ghana. The major objectives are; (1) to determine the types of technology that the banks invest in (2) to find out the level of IS investment in the banks and (3) to determine the relationship between IS investments and bank’s performance. The following hypothesis was proposed and tested statistically “Information systems investment has a positive relationship with bank performance”. This study adopted the survey methodology. Taking into account the purpose of the study and the research hypothesis, this study is comfortably placed within a scientific epistemology of logical positivism. The cases investigated were local banks and foreign banks. The six banks used were named Bank A, Bank B, Bank C, Bank D, Bank E and Bank F respectively for the sake of anonymity. The population for the study was the strategic staff from the six banks all selected at their Head Offices in Greater Accra Region. The findings revealed that, there has been a high rate of investment in the past three years made by the various banks. The findings also revealed that both the foreign banks and the local banks asserted to the fact that, market share, profitability and ROA increases as IS investments are employed in the industry. Subjecting the hypothesis to statistical test also showed that, information systems investment has a positive relationship with bank performance. This study would help bank managers to recognize the importance of information systems investment and its use to gain competitive advantage and increase profit margins.

Determinants of Deposit Money Banks' Profitability in Nigeria

Determinants of Deposit Money Banks' Profitability in Nigeria

The Impact of Delinquent Loans on Financial Performance of Banks in Ghana

The Impact of Delinquent Loans on Financial Performance of Banks in Ghana

Corporate social responsibility and financial performance: Fact or fiction? A look at Ghanaian banks

Orientation: With banks faced with fulfilling the increasing demands of diverse stakeholders, this study sought to explore the views and motives for corporate social responsibility practices in the Ghanaian banking sector and also to investigate any possible relationship between these practices and financial performance.Research purpose: This article examined the impact of corporate social responsibility on financial performance using empirical evidence from the Ghanaian banking sector.Motivation for the study: Although corporate social responsibility is a hot topic in Ghana and banks do practise it, no detailed study has been conducted to ascertain whether banks derive any benefits therefrom.Research design, approach and method: A sample size of 22 banks was involved. A structured questionnaire was used to obtain primary data whilst archival records were used to gather the secondary data.Main findings: The findings revealed that banks in Ghana view corporate social responsibility practices to be a strategic tool; banks are motivated to practise corporate social responsibility by legitimate reasons as much as they are motivated by profitability and sustainability reasons. Also, although there is a positive relationship between corporate social responsibility practices and financial performance, the financial performance of banks in Ghana does not depend significantly on their corporate social responsibility practices but rather on other control variables, such as growth, origin, debt ratio, and size.Practical implications: Properly adopted and implemented, corporate social responsibility can pay its way by contributing toward firm performance.Contribution: There is a positive but currently insignificant relationship between corporate social responsibility and financial performance amongst Ghanaian banks. However, given the numerous benefits of corporate social responsibility, it is recommended that firms continue to give priority to this practice.

Housing and construction finance, deposit mobilisation and bank performance in Ghana

We analyse bank performance in Ghana over the period 2001–2007. We posit a two‐equation simultaneous system for return on assets and volatility of earnings. In addition to other explanatory variables, this study is interested in the impact of deposits as a proportion of total assets and the proportion of housing and construction loans that banks extend. The triangular system is estimated by the least squares dummy variable approach. We find that the coefficients of the deposit ratio are very small in both equations and not at all significant. At the 10% significance level, the ratio of total loans to assets is positive and significant in both equations. Housing and construction loans tend to increase return on equity and decrease volatility. Increases in equity to assets ratio increase return on assets and decrease volatility of earnings significantly. The impact of non‐interest income is small and tends to increase return on assets and decrease volatility. Non‐performing loan ratio has the expected sign and is significant in the return on assets equation. Increases in inflation decrease profitability and increase volatility. We recommend that banks raise longer‐term financing on the capital market to undertake longer‐term profitable projects such as housing finance.

Bank risk and performance in Ghana

This paper examines the effect of risk on bank performance in Ghana. A panel data analysis of 18 banks over the period 1997-2008 is used in the study. The results show that lower risk levels lead to an increase in bank performance. In addition, the results show that when ownership interacts with risk, domestic banks that reduce risk are more likely to perform better than foreign banks with similar risk profiles. We also find that when size interacts with risk, bigger banks which engage in lower risk taking have lower performance. Relative to smaller banks, larger banks could increase activities aggressively and accommodate more risk leading to higher performance. Our results generally call for prudence in bank risk management by risk managers and central bankers alike.