Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry.
This paper analyzes bank specific, macroeconomic and some risk determinants of bank profitability of Rural and Community Banks (RCBs) in Ghana. Fixed effect panel regression analysis is applied on 114 RCBs annual financial reports during the period 2005-2013. The results generally suggests that cap...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016-04-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/1835 |
| _version_ | 1797923677059153920 |
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| author | Eric Kofi Boadi Yao Li Victor Curtis Lartey |
| author_facet | Eric Kofi Boadi Yao Li Victor Curtis Lartey |
| author_sort | Eric Kofi Boadi |
| collection | DOAJ |
| description |
This paper analyzes bank specific, macroeconomic and some risk determinants of bank profitability of Rural and Community Banks (RCBs) in Ghana. Fixed effect panel regression analysis is applied on 114 RCBs annual financial reports during the period 2005-2013. The results generally suggests that capital adequacy, asset quality, liquidity management, investment, gross domestic product growth rate, inflation, funding risk and bank resilience risk are significant determinants of RCBs profitability though with varying degrees. Whereas management efficiency, and bank size cannot be considered as positive contributors to RCBs profitability. The study also indicates that continuous profitability performance of RCBs can curtail shortfall in funding risk and enhance RCBs stability.
Keywords: Bank Performance, Bank Specific Determinants, Macroeconomic Factors, Risk Factors
JEL Classifications: C5, E4, G2, G21
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| first_indexed | 2024-04-10T14:51:20Z |
| format | Article |
| id | doaj.art-88c4bf1739d04940900eae2f3526bb8e |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:51:20Z |
| publishDate | 2016-04-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-88c4bf1739d04940900eae2f3526bb8e2023-02-15T16:07:36ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-04-0162Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry.Eric Kofi Boadi0Yao LiVictor Curtis LarteyUniversity of Electronic Science and Technology of China Koforidua Polytechnic This paper analyzes bank specific, macroeconomic and some risk determinants of bank profitability of Rural and Community Banks (RCBs) in Ghana. Fixed effect panel regression analysis is applied on 114 RCBs annual financial reports during the period 2005-2013. The results generally suggests that capital adequacy, asset quality, liquidity management, investment, gross domestic product growth rate, inflation, funding risk and bank resilience risk are significant determinants of RCBs profitability though with varying degrees. Whereas management efficiency, and bank size cannot be considered as positive contributors to RCBs profitability. The study also indicates that continuous profitability performance of RCBs can curtail shortfall in funding risk and enhance RCBs stability. Keywords: Bank Performance, Bank Specific Determinants, Macroeconomic Factors, Risk Factors JEL Classifications: C5, E4, G2, G21 http://mail.econjournals.com/index.php/ijefi/article/view/1835 |
| spellingShingle | Eric Kofi Boadi Yao Li Victor Curtis Lartey Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. International Journal of Economics and Financial Issues |
| title | Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. |
| title_full | Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. |
| title_fullStr | Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. |
| title_full_unstemmed | Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. |
| title_short | Role of Bank Specific, Macroeconomic and Risk Determinants of Banks Profitability: Empirical Evidence from Ghana's Rural Banking Industry. |
| title_sort | role of bank specific macroeconomic and risk determinants of banks profitability empirical evidence from ghana s rural banking industry |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/1835 |
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