Bank Reforms, Competition, and Stability in the Ghana Banking Industry PDF Download

Author: James Antwi
Publisher:
ISBN:
Category :
Languages : en
Pages : 116

View

Book Description
Keywords: Bank Reforms, Competition, Stability, Recapitalization, Economic Growth

Author: James Atta Peprah
Publisher: Springer Nature
ISBN: 3031093453
Category : Business & Economics
Languages : en
Pages : 321

View

Book Description
This book investigates factors that contribute to the development of an efficient financial sector in Ghana. While sustainable finance has long been known to propel economic growth and development, and while many African countries have taken initiatives to develop integrated frameworks of their financial sectors that tackle developmental challenges, scholars and policymakers have always grappled with understanding of factors that enhance performance of the financial sector. In this book, an expert team of authors examines the financial landscape, central bank policies, competition, financial innovation, financial inclusion and banking stability in Ghana, while also exploring how financing models such as enterprise finance and microfinance can be more effective in sustaining financial markets. The authors discuss how Ghana can build fortified institutions, regulatory frameworks, and productive capacity to strengthen the financial sector and foster pathways that will enhance economic development. Empirical and scientific evidence give this book a unique approach that is both qualitative and quantitative.

Author: Edmund Benjamin-Addy
Publisher: Anchor Academic Publishing (aap_verlag)
ISBN: 3954895463
Category : Political Science
Languages : en
Pages : 133

View

Book Description
For in recent times, a lot of banks have rated Ghana a good destination to extend their operations, the competition in the banking industry has heightened. To ensure that banks maintain adequate working capital, the industry regulator, i.e. the Bank of Ghana, issued a directive instructing all commercial banks to ensure that by the close of December 2012 their operating capitals do not fall below GH¢60million. At the close of December 2011, almost all foreign banks had complied. However, some of the local banks are sensing serious limitation in meeting the order. Therefore, the study has the objective to identify the challenges these banks have to face and thereby, the author will recommend avenues for raising funds to meet the proposed capital requirement. This study is based on six banks that operate in the Accra business district, namely the National Investment Bank (NIB), the Ecobank Ghana Ltd. (ECB), the Prudential Bank, the Ghana Commercial Bank, the Merchant Bank Ghana and the Zenith Bank. Primary data was obtained by soliciting views from bank officials on questions as the following. Which challenges confront Ghanaian Banks in their cash mobilization efforts? How could the banks generate more funds from the Ghana Stock Exchange? What efforts were made to secure funding from strategic investors? How could they reduce operating cost to enhance working capital? The second data set is based on financial statements and brochures of the banks. There was a direct approach to officers of these banks whose job description included liquidity adequacy or assets liability management. The questionnaire technique was adopted as the ideal research instrument. Moreover, the data was analyzed by means of SPSS application, TOPAZ and further, the resulting charts and graphs were featured.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 145528257X
Category : Business & Economics
Languages : en
Pages : 54

View

Book Description
Since the 2003 Financial Stability Assessment Program (FSAP) update, Ghana’s financial system has undergone rapid growth and structural transformation. The authorities have been implementing reforms to enhance the financial system’s resilience to shocks and its contribution to growth. The vulnerabilities reflect the interplay of several factors, but state involvement is an important element. The other contributory factors include deficiencies in commercial banks’ risk management, supervision, and the insolvency regime. Additional recommendations are detailed in the Report on the Standards and Codes on Compliance (ROSC) with the Basel Core Principles (BCP).

Author: T. O. Antwi-Asare
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 136

View

Book Description

Author: Agnes Olatokunbo Martins
Publisher: Taylor & Francis
ISBN: 1040085865
Category : Business & Economics
Languages : en
Pages : 216

View

Book Description
This book comprehensively explores the intricate relationship between banking reforms, economic well-being, and poverty reduction across the African continent. Delving into the historical roots of banking reforms, it examines the resilience of banking sectors in key African countries like South Africa, Nigeria, Kenya, MENA, and beyond. The findings suggest that much attention should be paid to the design of banking systems and how banks are regulated. This focus on banks differs from many discussions on the topic, which tend to be more concerned with other policy areas such as economic policy, international trade policy, and aid. The book’s extensive and contemporary overview of banking reforms enables a comparative analysis of regulatory frameworks, supervision practices, and government interventions. It evaluates theoretical frameworks linking banking reforms to bank stability and resilience, drawing on financial intermediation, resource allocation, systemic risk, and financial development concepts. It empirically tests the causal relationships between the Basel II/III capital reforms, bank sector resilience, economic growth, and poverty reduction and identifies and analyses the channels and mechanisms through which banking reforms affect economic welfare and poverty reduction in Africa, such as credit availability, financial efficiency, financial innovation, and financial access. The book offers an insightful exploration into a brighter economic future on the African continent. The findings presented herein offer valuable insights for policymakers, researchers, and practitioners striving to enhance financial stability, foster economic growth, and alleviate poverty in Africa.

Author: George Owusu-Antwi
Publisher:
ISBN:
Category :
Languages : en
Pages : 396

View

Book Description
A major financial sector reform program has been implemented in Ghana since the early 1980s, involving financial liberalization and institutional reforms. Financial reforms became necessary, because the pre-reform policies together with acute and prolonged economic crisis had severely damaged the financial system. In the early 1990s, the government launched financial market liberalization policies under the financial sector adjustment program to restructure the distressed banks and clean up nonperforming assets in order to restore banks to profitability and viability. The study investigated the market structure of Ghana's banking industry and determined whether the market structure has been changed after the financial restructuring. This study specifically measures the degree of competition of the banking system in Ghana by using the H-statistic. Various studies on the degree of competition were reviewed. This study employs a widely used nonstructural methodology put forward by Panzar and Rosse (1987)---the H-statistic---and draws upon comprehensive average annual data from the various issues of the Bank of Ghana annual reports from 1988 to 2008. Maximum likelihood techniques were used to estimate the model. Based on the reported H-statistic for pre and postliberalization (2.35657 and 3.27530 respectively), it can be concluded that Ghana's banks are operating under perfect competition. However, the test for a change in competition status at the time of liberalization was not significant, indicating no evidence of a change in competition as a result of liberalization. The result of the market equilibrium reveals that the market equilibrium equals zero, revealing the existence of long-run equilibrium making the Panzar and Rosse model meaningful to interpret. The findings are consistent with the results obtained by Yuan (2006) who found Chinese banking market to be near perfect competition. This study has extended and strengthened some earlier results on bank competition in Ghana. However, the results of this study are different from the study undertaken by Buchs and Mathisen (2005), who found Ghanaian banking markets to operate under monopolistic conditions without considering the effect of liberalization. Three innovations of the current study are the use of comprehensive data source, the consideration of longer period of time covering two decades (1988--2008) and the incorporation of liberalization factors. Overall, the Panzar and Rosse model is regarded as a valuable tool for assessing the banking market conditions in Ghana. Since a bank's revenue is more likely to be observable than output prices and quantities or actual costs.

Author: Kofi Adjei-Frimpong
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659613401
Category :
Languages : en
Pages : 60

View

Book Description
The banking industry in Ghana has changed considerably since 1988 as a result of the gradual and steady implementation of financial services deregulation, globalisation and the emergence of communication and information technologies. The financial deregulation was undertaken as part of the structural economic adjustment and stabilization program launched in 1983 with the assistance of the International Monetary Fund and World Bank. These financial sector reforms are aimed at increasing banks competitiveness, efficiency and performance in Ghana's banking system that could then contribute in greater measure to stimulate economic growth and ensure financial stability. This study analyzes the cost efficiency of the banking industry in Ghana over the period of 2001-2010 using the data envelopment analysis. In addition, it investigates the impact of size, capitalization, loan loss provision, inflation rate and GDP growth rate on Ghana's bank efficiency using both static and dynamic panel data models. The static model is estimated by the fixed effects estimator whereas the dynamic model is estimated by the two step system GMM estimator.

Author: Stephany Griffith-Jones
Publisher: Routledge
ISBN: 1317301692
Category : Business & Economics
Languages : en
Pages : 203

View

Book Description
This book explores how the financial system should be regulated and structured to achieve the twin goals of inclusive growth and financial stability, with a focus on African low-income countries (LICs). The subject and content of this book is original in that it attempts to draw on the lessons and radical rethinking on the financial sector in developed and middle income countries, arising in the wake of the international financial crisis. It includes four in- depth country case studies, of Kenya, Ghana, Nigeria and Ethiopia, but also analyses the empirical evidence for Sub-Saharan Africa as a whole, evaluating the relevance (or not) of such major changes for the very different financial sectors and economies in low income countries. Achieving Financial Stability and Growth in Africa has major academic and policy implications, especially for low income countries, but also more generally, on broader issues. These include the desirable size of the financial sector, as well as more specific issues, such as the high cost of borrowing of small and medium enterprises in LICs, and possible measures to reduce it. Highly topical subjects like the appropriate regulation of the financial sector and management of capital flows are discussed in depth. Though drawing on comprehensive reviews of the literature, this volume has the virtue of the large comparative academic and policy experience of researchers, as well as in-depth case studies, that take account of institutional and economic features of low- income countries. Written by senior academics and policy-makers, this book is a must read for those researching or participating in the financial sectors of low-income countries, as well as in developed economies. It is also suitable for those who study political economy and public finance.

Author: Mr.Johan Mathisen
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451860368
Category : Business & Economics
Languages : en
Pages : 26

View

Book Description
This paper assesses the degree of bank competition and discusses efficiency with regard to banks' financial intermediation in Ghana. By applying panel data to variables derived from a theoretical model, we find evidence for a noncompetitive market structure in the Ghanaian banking system, which may be hampering financial intermediation. We argue that the structure, as well as the other market characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system.