The Contributing Factors To Banks Performance In Ghana: Empirical Evidence From 1996 To 2017
Author(s)
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Volume 8 - September 2019 (09)
Abstract
the study used time series methodologies to examine the factors that affect banks' performance in Ghana from 1996 to 2017. The study used methodologies such as multivariate regression, generalized linear model, and granger causality to make its statistical inference. In conclusion, the study infers that there is a positive and statistically significant effect of regulatory capital to risk-weighted assets (capital adequacy ratio), bank concentration, bigger banks, credit to deposit ratio and economic growth on banks' performance in Ghana. However, the study also found that non-interest income to total income ratio has a negative and statistically significant effect on banks' performance. Evidence of causality was also found from bigger banks to return on assets and return on equity as well as bank concentration to return on assets and return on equity. In addition, capital adequacy ratio has a causal relationship with return on equity and non-interest income to total income has a causal relationship with return on assets
Keywords
Banks performance; regulatory capital to risk-weighted asset ratio; generalized linear model; multivariate regression; Ghana
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