Assessment of Efficiency and Profitability of Listed Banks in Ghana

Mawutor, John Kwaku Mensah; Awah, Fred

doi:10.5430/afr.v4n1p164

Cited by 7 publications

(6 citation statements)

References 19 publications

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“…Menurut Buchory (2015) bahwa jika kredit gagal, maka kemampuan bank untuk memberikan pinjaman baru akan dibatasi. Peningkatan risiko kredit biasanya menunjukkan bahwa profitabilitas bank menurut Mawutor & Fred (2015), NPL yang tinggi mengindikasikan bahwa pengelolaan kredit pada bank tidak optimal yang mengakibatkan risiko kredit yang dialami oleh bank tersebut akan menjadi tinggi. Semakin tinggi rasio dari NPL, maka akan menyebabkan semakin buruk pula kualitas kredit bank suatu bank yang artinya jumlah kredit bermasalah semakin besar, sehingga kemungkinan suatu bank dalam kondisi bermasalah akan semakin besar dan dapat mengakibatkan turunnya ROA suatu bank.…”

Section: Gambar 1rata-rata Return On Assets Bank Umum Periode 2013-2015unclassified

Pengaruh Car, Npl, Der Dan Lar Terhadap Roa Pada Bank Umum Di Bursa Efek Indonesia

Zeuspita

Yadnya

2019

EJMUNUD

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ROA is a comparison between pre-tax profit and total bank assets. Factors that can influence ROA must be observed by bank management in order to obtain optimal ROA. Optimal ROA shows that banks are able to make good use of assets owned to generate profits. The purpose of this study was to determine the effect of CAR, NPL, DER and LAR partially on ROA in commercial banks on the IDX for the period 2013-2015. The sample in this study were banking companies listed on the Indonesia Stock Exchange for the period 2013-2015, which totaled 31 banking companies, which were taken using the census method. Data collection is done by nonparticipant observation methods. The data analysis technique used is multiple linear regression. The results showed that there was a significant positive effect between CAR and ROA. NPL shows a significant negative effect on ROA. DER shows a significant negative effect on ROA, and LAR shows a significant positive effect on ROA. Keywords: CAR, NPL, DER, LAR, ROA

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Section: Gambar 1rata-rata Return On Assets Bank Umum Periode 2013-2015unclassified

Pengaruh Car, Npl, Der Dan Lar Terhadap Roa Pada Bank Umum Di Bursa Efek Indonesia

Zeuspita

Yadnya

2019

EJMUNUD

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“…Information technology is an essential instrument of competition used by business concern and banks seeking to stay dominant and achieve competitive superiority over others (Roy, 2018). This implies that banks and firms will continue to embrace technological innovations as it improve both product and service quality (Mawutor, 2014;Nworuh & Ahaiwe, 2003). Sharing similar thought, Adewuyi, (2011) opined that banks often invest funds in emerging technologies as a strategic and tactical channel for staying competitive.…”

Section: Background To the Studymentioning

confidence: 99%

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Enoruwa,

Onwumere,

Ibunor

et al. 2023

J. Professional Business Review

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Purpose: Technological innovations are understood as new or improved processes, products or services, the technical characteristics of which are significantly different from the previous ones. Technological innovations in the banking sector have undoubtedly improved the functionality and performance of banks across the globe including West African countries such as Nigeria, Ghana and Coted’Ivoire. It has redefined the way and regime in banking operation in West Africa. It enables banks to improve the quality of service delivery to their numerous customers and makes it easy for customers to access banking services at the lowest cost possible. This study, therefore, focused on examining the impact of technological innovations on bank performance in West Africa. Method: A set of annual time series covering the period 1997 to 2020 and a multiple regression analysis including an autoregressive distributed lag (ARDL) model, a fully modified OLS (FMOLS) model and a dynamic OLS (DOLS) model were used. Bank performance was measured using bank return on assets (ROA) and bank return on equity (ROE), while technological innovation was measured using indicators such as Internet Banking (INB), Automated Teller Machines (ATM), Mobile Banking (MBN) and Point of Sale (POS) whose control variables are inflation rate (INFR) and exchange rate (EXR). Results and conclusion: Findings from the ARDL panel results show that both positive and negative long-term relationships exist between technological innovation and bank performance in West Africa. We thoroughly verified the results from the ARDL model with FMOLS and DOLS and the findings show that technological innovation has a positive and negative long-run relationship with bank performance in West Africa and the results were the same for Nigeria, Ghana and Ivory Coast. Originality/Value: This study, therefore, recommends that improving the quality of technologically innovative tools of banks such as internet banking, ATMs, POS and mobile banking with quality apparatus can lead to improved bank performance. Banks should also invest in cyber security to ensure funds deposited in banks are safe which will boost investor and customer confidence, acceptance and lead to increased bank performance.

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“…Asia and Ratan (2019) investigated the relationship between corporate governance and non-performing loans of listed commercial banks in Bangladesh and found that corporate governance had a significant positive effect on non-performing loans of the sampled listed banks in Bangladesh. Mawutor and Awah (2014) reported that liquidity and bank size had insignificant negative effect on return on assets, while credit risk, leverage and productivity also had a negative but significant effect on return on assets of the listed banks in Ghana. In Taiwan, Chen and Pan (2012) concluded that credit risk efficiency had a weak but insignificant correlation with shareholders' wealth of the sampled banks for the period under consideration.…”

Section: Review Of Extant Literaturementioning

confidence: 99%

Risk Management and Shareholders’ Wealth Maximization

Ogundajo¹,

Adefisoye²,

Nwaobia³

2020

International Journal of Business, Economics and Management

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Risks are fundamentally part of business operational models; it cannot be completely eliminated and if not efficiently managed could result to loss of value. Wealth creation could only take place when the prevailing financial risks in the banking sectors are identified and carefully handled. An expost-facto study of 100 firm-year observations was conducted using ten listed Deposit Money banks in Nigeria for a period of 10 years from 2009 to 2018. The results of the multiple regression analysis carried out revealed that risk management significantly affected shareholders' wealth of listed banks. Credit risk (NPLR) and operating efficiency risk (OPER) had significant negative effect on Market Value (MV) while capital risk and liquidity ratio (LQR) had significant positive effect on market value (MV). This study concluded that four elements of risk (credit risk, capital risk, operating risk, liquidity risk) significantly affected shareholders' wealth of listed banks in Nigeria. Therefore, the management of the Nigerian banks should ensure that non-performing loan ratio to total loan is kept at its minimum; ensure adequate liquid fund in meeting customers demand as when needed, engage competent hands where deemed necessary in their operations to mitigate operating efficiency risk and possess adequate capital ratio in accordance with CBN minimum capitalization ratio, if possible, beyond the minimum required by the regulatory bodies. Contribution/Originality: This study is one of the few studies which have examined the four elements of risk associated with banking industry, as it affects the wealth of the shareholders. The four risk elements considered were credit risk, operating risk, capital risk and liquidity risk.

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Assessment of Efficiency and Profitability of Listed Banks in Ghana

Cited by 7 publications

References 19 publications

Pengaruh Car, Npl, Der Dan Lar Terhadap Roa Pada Bank Umum Di Bursa Efek Indonesia

Pengaruh Car, Npl, Der Dan Lar Terhadap Roa Pada Bank Umum Di Bursa Efek Indonesia

Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)

Risk Management and Shareholders’ Wealth Maximization

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