Banking Regulatory and Market Framework in Ghana: Strength, Weaknesses, Opportunities and Threats

MacCarthy, John; Dery, Luke

doi:10.2139/ssrn.2770759

Cited by 3 publications

(3 citation statements)

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“…In the Ghanaian context, there are scanty works on banking activities (Alhassan, 2017;MacCarthy and Dery, 2016;Amidu and Hinson, 2006). Amidu and Hinson (2006) Arellano and Bond (1991) and Arellano and Bover (1995).…”

Section: Empirical Literaturementioning

confidence: 99%

“…In the Ghanaian context, there are scanty works on banking activities (Alhassan, 2017; MacCarthy and Dery, 2016; Amidu and Hinson, 2006). Amidu and Hinson (2006) observe that less than 1% of Ghanaian banks are exposed to credit risk and assets are financed mostly by debts.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Also, capital structure is positively related to risk and inversely related to bank’s size and lending. Studying capital adequacy of banks in Ghana with dynamic panel models, Alhassan (2017) indicates that banks in Ghana significantly engage in liquidity transformation and are positively associated with bank solvency, MacCarthy and Dery (2016) investigating bank regulatory and market framework in Ghana: strength, weakness, opportunities and threats conclude that the reforms and regulation of banks improve socio-economic development and attracts Nigeria Banks to Ghana. Queku (2020), using Olshon’s model and Horizontal Incremental value relevance approach on the value relevance of fair value and stock price predictability of listed banks in Ghana, observe a weak significant difference between the book value of equity at fair value and historical costs, a strong significant difference between earnings at fair value and historical cost, as well as the fair value being relevant at both balance sheet level and income level.…”

Section: Literature Reviewmentioning

confidence: 99%

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Bank capital, liquidity and risk in Ghana

Carsamer

Abbam

Queku

2021

JFRC

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Purpose Capital, risk and liquidity are the vitality of the banking industry, which can improve the efficiency of banking and promote the efficiency of resource allocation. The purpose of this study is to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Design/methodology/approach The authors adopted the system generalized method of moments (GMM) to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Based on the call reports data from banks, GMM was used to test the hypotheses that new liquidity ratios affect bank capital and risk adjustments, as well as how banks respond to the regulation. Findings The results indicate banks targeted capital, risk and liquidity and simultaneously coordinate short-term adjustments in capital and risk. New liquidity measures enable banks to coordinate risk and liquidity decisions. Short-term adjustments in new liquidity rules inversely impact bank capital. Short-term adjustments in new liquidity rules inversely impact bank capital and capital adjustments adversely affect changes in the liquidity coverage ratio (LCR). Research limitations/implications The primary results revealed that Ghanaian banks simultaneously coordinate and target capital, risk exposure and liquidity level. Also, capital adjustments positively influence risk adjustments and vice versa while bidirectional negative coordination exists between bank capital and risk on one hand and liquidity on the other hand. Short-term adjustments in new liquidity rule inversely impact bank capital and capital adjustments adversely affect changes in the LCR. The findings partially confirm the theoretical predictions of Repullo (2005) regarding the negative links between capital, risk and liquidity but the authors have higher capital induces higher risk. Practical implications Banks should balance off their targeted risk and liquidity in order not to sacrifice capital accumulation for liquidity. Originality/value This research offers new contributions in the research of bank management of capital and liquidity toward banks during a financial crisis from a theoretical perspective and trust management from an applicative perspective.

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Section: Empirical Literaturementioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Bank capital, liquidity and risk in Ghana

Carsamer

Abbam

Queku

2021

JFRC

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Environmental Management and Its Impact on CSR Activities in the Field of Sustainable Development

Švikruhová

Zábojníková

Kapsdorferová

2023

TalTech Journal of European Studies

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The way in which both renewable and non-renewable resources are used, and the speed at which these are being exploited, are rapidly eroding the planet’s capacity to regenerate the resources and environmental services on which our prosperity and growth are based. The clothing and textile industry is characterized by a linear (take-make-waste) economic model and huge use of non-renewable resources. In order to integrate circular economy as one of the challenges in the clothing and textile industry, we must boost past research directly to innovation to bring about a higher quality of life for all. Corporate social responsibility (CSR) has gained special importance among researchers, the business community, and customers in recent years. Today, manufacturers have to take another step forward to promote their positive social attitude and take care of their responsibility towards society. In the framework of sustainable development, CSR is carried out by achieving economic, social, or environmental goals. Consumers and shareholders currently expect a responsible approach from clothing and textile companies in the production of sustainable clothing, recycling, or ensuring suitable working conditions for employees. It is important not only to support socially responsible businesses but also to raise awareness of the negative environmental impact of the clothing and textile industry. Based on the recognition of the importance of shifting from a linear to a circular approach in the clothing and textile industry, we see potential in recycling the textile fiber in order to close the loop and use innovative technology to transform the textile waste into recycled material by keeping in mind barriers in technology. This article evaluates the social responsibility of a selected company in the field of sustainable development by setting a good example in the Slovak market through the results of a questionnaire survey.

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Collapse of Big Banks in Ghana:Lessons on Its Corporate Governance

2019

RJFA

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The news that two indigenous banks, UT and Capital Bank have been taken over by GCB Bank has come as a shock to many Ghanaians, as just a year ago, Capital Bank was adjudged the Best Growing Bank, and Best Bank in Deposits & Savings at the15th Edition of Ghana Banking Awards while UT Bank was adjudged best bank in 2011 by the same institution. UT bank is one of Ghana's most celebrated brands, after it evolved from a microfinance company into a successful bank.The study reveals the weak compliance to common Corporate Governance practices within the two banks. Specifically, the two banks had small board size as compared to the standard size of the banking industry. Also, the boards did not have enough committees to discharge its operation. The independence of the boards was also impaired as in most of the directors are executives and the non-executive directors have a close relationship with the promoters and executives.

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Banking Regulatory and Market Framework in Ghana: Strength, Weaknesses, Opportunities and Threats

Cited by 3 publications

References 1 publication

Bank capital, liquidity and risk in Ghana

Bank capital, liquidity and risk in Ghana

Environmental Management and Its Impact on CSR Activities in the Field of Sustainable Development

Collapse of Big Banks in Ghana:Lessons on Its Corporate Governance

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