Bank-Specific and Macroeconomic Determinants of Commercial Banks Profitability in Ghana

Yakubu, Ibrahim Nandom

doi:10.5296/ifb.v3i2.9936

Cited by 19 publications

(28 citation statements)

References 21 publications

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“…Various studies revealed that size positively affects the profitability of the banks inspected, such as Abobakr (2018), Kawshala and Panditharathna (2017), Menicucci et al, (2016), Yakubu (2016), Pradhan and Shrestha (2016), and Ally (2014). Mostly, prior studies on the effect of bank size on its profitability line with the argument that larger banks benefit from economies of scale and cost reduction (Ben Naceur and Goaied, 2008;Bourke, 1989;Molyneux and Thorton, 1992;Bikker and Hu, 2002;Goddard et al, 2004aGoddard et al, , 2004b, therefore they are expected to have higher levels of performance than smaller banks.…”

Section: Bank Sizementioning

confidence: 99%

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

Kassem¹,

Sakr²

2018

JFBM

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The purpose of this study is to investigate the relationship between bank-specific factors and the profitability of banks in Egypt. Thus, finding the main internal characteristics for achieving higher profitability. In this research, OLS regression analysis is used to examine the relationship between bank-specific characteristics and bank's profitability for a sample of 19 Egyptian banks during the period 2007-2016. The findings reveal that bank size and loan loss provision ratio are the main determinants of bank's profitability, by showing a significant relationship with all measures of profitability. Capital ratio shows a significant relationship with ROA and NIM, but insignificant with ROE. However, Loan ratio and deposit ratio have an insignificant effect of bank's profitability.

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Section: Bank Sizementioning

confidence: 99%

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

Kassem¹,

Sakr²

2018

JFBM

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“…The coefficient of bank size is positively and statistically significant, suggesting that large banks harvest the benefits of economies of scale and, thus, they are more profitable than their small counterparts. Abdullah et al (2014) have also documented the positive link between banks' size and performance. These results suggest that banks can increase their financial performance by increasing their size and reducing CR.…”

Section: Results Of Banks' Performance Modelmentioning

confidence: 91%

“…They also showed that only the real interest rate affects banks' performance positively and significantly. Abdullah, Parvez, and Ayreen (2014) analyzed the profitability of 26 banks listed on Dhaka Stock Exchange in Bangladesh over the period from 2008-2011. They found sig-nificant and positive impacts of bank size, cost efficiency, capitalization, and higher concentration on ROA and NIM.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impacts of Inflation and Interest Rate Uncertainty on Performance and Solvency of Conventional and Islamic Banks in Pakistan

Rashid

Khalid²

2017

J. Islam. bus. manag.

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Abstract. This paper examines the effects of inflation and real interest rate uncertainty on the performance and solvency of banks in Pakistan. It also examines whether the effect of both types of uncertainty differs for conventional and Islamic banks. Annual data covering the period 2008-2015 for a sample of 25 banks are used to carry out the empirical analysis. Generalized Least Square (GLS) estimator is applied to overcome the problem of heteroscedasticity. The results indicate that several bank-specific variables are important in determining the performance and solvency of banks operating in Pakistan. The results also show that these variables have considerable differential impacts on the financial performance and solvency of both conventional and Islamic banks. With regard to the effects of macroeconomic variables, the results show that the rate of inflation, the interest rate, and their volatility also have quite different effects on the performance and solvency of conventional and Islamic banks. We find that although neither inflation nor interest rate uncertainty significantly affect the solvency of conventional banks, the solvency of Islamic banks is significantly affected by both types of uncertainty. Specifically, we find that inflation uncertainty has a negative, whereas, the uncertainty associated with the real interest rate has a significant positive impact on the solvency of Islamic banks. However, both types of uncertainty have a statistically insignificant effect on the financial performance of both conventional and Islamic banks in Pakistan. Providing significance evidence on the bank-specific empirical determinants, our analysis helps bank managers to improve their banks' financial performance and solvency. Further, our findings are helpful for understanding how the financial performance and financial soundness of conventional and Islamic banks are determined during periods of heightened inflation and real interest rate uncertainty.

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“…This reform helped the country to increase the number of banks operating. The Africa Banking Survey in 2014, annual report stated that a maximum of 28 banks including domestic and foreign were in operation, non-banking institutions were reported to be 58, and 137 consists of rural and community banks [32] .…”

Section: Banking Sectormentioning

confidence: 99%

CSR and societal change in international financial markets of Africa

Asare

Ahmed

2019

Resour Environ Econ

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Corporate social responsibility is the foremost business strategy focus for managers who aim to have long-term success in competitive environment. Different scholars have found it difficult with its definition, explanation, application, and measurement in organizations on who and how it should be done reciprocally. The present study seeks to review societal change with contribution from corporate social responsibility in international financial markets of Africa. The study is qualitative in nature and seeks to analyze the maximum practice of CSR activities and where there is room for improvement in CSR initiatives among African firms. There are three important forms of corporate social responsibility which are aligned to the emerging social needs of community for true fulfillment and addressing the social responsibility at corporate level.

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Bank-Specific and Macroeconomic Determinants of Commercial Banks Profitability in Ghana

Cited by 19 publications

References 21 publications

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

Impacts of Inflation and Interest Rate Uncertainty on Performance and Solvency of Conventional and Islamic Banks in Pakistan

CSR and societal change in international financial markets of Africa

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