The proliferation of Nigerian banks and its impact on the performance of the traditional banks in Ghana: a case study of Ghana Commercial Bank

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Sadiq, Kwadwo Dwomoh
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In past, the Ghanaian banking sector used to be highly undeveloped and this was evident in the traditional banks, notably Ghana Commercial Bank, Agricultural Development Bank and the two foreign dominated banks-Barclays Bank Ghana and Standard Chartered Bank. However, the proliferation of the Nigerian banks is supposed to introduce market discipline, strong business practices, and technology, and new products, risk management systems and infuse foreign expertise, and bank capital. Generally, the study aimed at finding out the proliferation of Nigerian Banks and its impact on the performance of the Traditional Banks Major research instruments such as questionnaires and interview guides were used in the data collection. A sample size of three hundred and ninety (390) were chosen which the researcher thought to be fairly representative of the population. In addition, financial indicators such as profitability, shareholders’ and activity ratios were employed to find out the position of the bank which were extracted from GCB’s balance sheet (200502007). It was revealed that, although there is intense competition in the banking industry, GCB hand not to retain more of its customers, this however, did not correspond with its total deposit since the rise in the total deposit in GCB confirms that overall, its total assets and deposit grew remarkably from 2002 to 2007. The study recommended that GCB should particularly come out with strategic elements, products attribute, resources, competence from being a weak competitor to a strong competitor and then tailor their products to suit both the customers and the market trends.
A thesis submitted to KNUST School of Business in partial fulfilment of the requirements for the award of Master of Business Administration (MBA), 2008