Cross-Border Banking and Financial Performance: Cross-Border Banking and Financial Performance; a Comparative Analysis of Local and Foreign Commercial Bank in Ghana - Couverture souple

Afriyie, Erasmus Yaw; Acka Aidoo, Germain Kofi

 
9786138961376: Cross-Border Banking and Financial Performance: Cross-Border Banking and Financial Performance; a Comparative Analysis of Local and Foreign Commercial Bank in Ghana

Synopsis

The study compares the financial performance of local and foreign commercial banks in Ghana for 5 years from 2013 to 2017. The study uses a total sample of 20 commercial banks, of which 10 are local and 10 foreign. The study employs financial ratios such as return on asset, return on equity, net interest margin, cost to income ratio, cash deposit ratio, loan to assets ratio, non-performing loans ratio, capital adequacy ratio, and bank size. The results show that the foreign commercial banks performed well in (ROA), (ROE), (CDR), (CTI), (CAR), and (SIZE) except for (LAR), (NPL), and (NIM) during the period under study. The study recommends that a range of policy measures be deployed to enhance foreign banks' engagement and encourage them to engross the country's financial deepening agenda. More so, financial infrastructures should be strengthened consistently across countries that share strong cross-border links to aid quick access to credit information to enhance payment systems' efficiency.

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