Record Details

Banks Performance in Ghana: Trends and Determinants

Ghana Journal of Development Studies

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Title Banks Performance in Ghana: Trends and Determinants
 
Creator Nkegbe, Paul Kwame
Ustarz, Y
 
Subject Structure-Conduct-Performance Hypothesis, Market Power Theory, Return on Assets, Return on Equity, Net Interest Margin
 
Description The paper examines determinants of banks performance in the Ghanaian banking industry for the period  2000-2010 using trend graphs, equations and panel data estimation techniques. Three different measures of  performance are employed and the results show a negative trend in banks performance within the study  period. This observation is worrying due to the crucial role banks play in the economy. On the determinants,  market share of loan is found to be positively related to performance, confirming the relative market power  hypothesis. The results further reveal that banks in Ghana pass on their inefficiencies to their customers by  raising their lending rates and lowering their deposit rates. The findings have some policy implications: banks  should reduce the level of administrative overheads instead of passing their inefficiencies to their customers, as this has the effect of reducing the amount of credit customers would take for economic activities.Keywords: Structure-Conduct-Performance Hypothesis, Market Power Theory, Return on Assets, Return on Equity, Net Interest Margin
 
Publisher Faculty of Integrated Development Studies, University for Development Studies
 
Contributor —
 
Date 2015-11-03
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/gjds/article/view/125115
10.4314/gjds.v12i1-2.
 
Source Ghana Journal of Development Studies; Vol 12, No 1-2 (2015); 33-52
0855-6768
 
Language eng
 
Relation http://www.ajol.info/index.php/gjds/article/view/125115/114647
 
Rights Faculty of Integrated Development Studies, University for Development Studies, Ghana