Evaluation Of Financial Performance Of Domestic Banks In Ghana; Ratio Analysis Approach  

Abstract Category: Accounts and Economics
Institution / University: BOLGATANGA POLYTECHNIC, Ghana
Published in: 2017

Magazine/Journal Abstract / Summary:

The Ghanaian banking sector has witnessed impressive performance translated in economic and policy trends. It is in this light that a descriptive study design was adopted to measure, describe and analyse the performance of four (4) out of the fourteen (14) domestic commercial banks in Ghana during the period 2009-2015 by focusing on the performance of CAL Bank Ltd, Agricultural Development Bank, Home Finance Company Bank and Ghana Commercial Bank Ltd. Microsoft Excel software was used to analyse data. The results indicated that the overall banks’ performance in terms of profitability and liquidity have witnessed improvements in most of the years under study. The banks in at different years were found to be more profit efficient than cost efficient, while CAL Bank was found more cost efficiency than their counterparts between 2012-2015, on bank management behaviour, the result show that inefficiency of domestic banks in Ghana is not caused by neither bad luck nor bad management policies but rather the economic crunch. The study again found in relation to the domestic banking industry that the consequence of the global financial crisis and a slowing down in the domestic economy were reasons coupled with loans and advances to customers as well as increased credit impairments owing to defaults which negatively impacted profitability. The researcher therefore concludes that the main income of financial institutions is interest income. The cash position indicator has positive and significant role on ROA when rising of short term deposits increase the net interest income after interest expenses. Based on the conclusion, it is recommended that, banks manage their liquidity very well. When banks hold adequate liquid assets, cost of doing business efficiently, their profitability would improve. Banks’ are able to stand risk and solve financial relate problems with enough capital base

Magazine/Journal Keywords/Search Tags:
Bank, banks, domestic, performance, profit

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Submission Details: Magazine/Journal Abstract submitted by JUABIN MATEY from Ghana on 08-Feb-2017 13:13.
Abstract has been viewed 70 times (since 7 Mar 2010).

JUABIN MATEY Contact Details: Email: juabinduut@gmail.com Phone: 0504366724/0542139970

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