Macro and Micro Determinants Banks’ Profitability in Ghana
| dc.contributor.author | Opare Edward | |
| dc.date.accessioned | 2024-01-10T11:44:17Z | |
| dc.date.available | 2024-01-10T11:44:17Z | |
| dc.date.issued | 2023 | |
| dc.description | A thesis submitted to the Institute of Distance Learning in partial fulfilment of the requirements for the award degree of master of science In Accounting and Finance | |
| dc.description.abstract | This study aimed to examine the macro and micro determinants of banks’ profitability in Ghana. The study utilised secondary data of the individual banks and other economic data gathered from the period beginning from 2017 to 2022. Eight (8) banks who had operated in the Ghanaian banking sector as at 2017 to 2022 were examined. These banks include Access Bank, Agricultural Development Bank of Ghana (ADB), CAL Bank, Ecobank Ghana, Ghana Commercial Bank (GCB), Société Générale Bank, Republic Bank and Standard Chartered Bank. In the study, the Fixed Effect panel data model was employed. The study adopted Return on Assets (ROA) and Return on Equity (ROE) as dependent variables, and Efficiency ratio (EOI), Size, Capital adequacy ratio (CAR), Asset quality (AQ), Net interest income to total assets (NIITA), Gross domestic product (GDP), Inflation (INF) and Money supply (MS) as the independent variables. It was evident that factors such as Efficiency Ratio (EOI), Bank Size, Capital Adequacy Ratio (CAR), Asset Quality (AQ), Net Interest Income to Total Assets (NIITA), Gross Domestic Product (GDP), Inflation (INF), and Money Supply (MS) all play significant impact on Return on Assets (ROA) are key predictors of the profitability of banks. For Return on Equity (ROE), the findings are consistent with many of the ROA determinants. Efficiency Ratio (EOI), Bank Size, CAR, AQ, NIITA, GDP, INF, and MS all demonstrate significant associations with ROE. The study concluded factors such as efficiency, size, capital adequacy, asset quality, net interest income, economic conditions, inflation, liquidity, competition, and regulation are important in shaping the profitability of banks. The study recommended that banks should focus on improving their operational efficiency. | |
| dc.identifier.uri | https://ir.knust.edu.gh/handle/123456789/15004 | |
| dc.language.iso | en | |
| dc.publisher | KNUST | |
| dc.title | Macro and Micro Determinants Banks’ Profitability in Ghana | |
| dc.type | Thesis |