Globalization and competition: a case study of the banking industry in Ghana

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
There has been liberalization of the Ghanaian Banking Industry which now allows all banks to undertake universal banking activities without the need for separate license for each of these banking activities. Thus, the de-regulation has brought in quite a lot of burden on the local banks whose focus was on a particular sector of banking activity. Globalization has also brought about inter-bank competition that is internal competition results from the desire of the banks to be responsive to changing markets and economic fortunes of customers and to enable them to outpace other banks. The problem is that with the present increase in competition as a result of globalization, how are these banks able to compete with foreign banks. As a result of this problem, this study therefore seeks to assess how are Ghanaian banks dealing with the present de-regulation of the banking industry and how has globalization imparted on the local banks in Ghana. Upon this background a random amp1ing technique was adopted. Two hundred officials of various banks were sampled to administer a questionnaire. The study revealed that banking activities have been intensified and each organization is adopting different approaches to expand and manage their operations. These includes the opening of new branches so as to get closer to their customers, investment in information technology (IT) and the hiring and training of their manpower. The study therefore, recommends that, to be able to cope with the competitive pressures in order to remain in business, bankers are expected to recognize the need for conscious efforts to be made to beat the competition by ensuring that their customers get value for their money and benefit from efficient and reliable service. The level of skills, knowledge and attitude of banking staff should also not be overlook. The challenge that will confront the bank personnel’s in the requisite skills and professional competence comparable to international standards.
A thesis submitted to the Board of Postgraduate in partial fulfilment of the requirements for the degree of Master of Business Administration, 2008