Overview of the banking industry the banking system as at end march 2016 comprises the bank of ghana, 29 universal banks excluding arb apex bank which is a minicentral bank for rural banks, 9 rural and community banks, 61 nbfis, and 555 mfis. The importance of the fisheries sector in the socioeconomic development of the country cannot be overemphasised. It only requires updating with the help of new data that are constantly retrieved from publishers databases and other sources. Based on our analysis, the banking sector in 2018 is to pay a little over. Pdf customer satisfaction in the banking industry in.
The automobile industry is one of the invisible faces of liberalization. Present crisis of the banking industry of bangladesh. Since the late 1980s ghanaian banks have increased in stature and number, and for much of the last decade they have enjoyed strong growth rates and large profit margins. The nigerian experience 12 2 survey findings 16 3 an overview of the economy 28 4 key developments in the banking industry 32 5 quartile analysis 36 6 market.
This has increased the asset base of the banking industry and positioned ghana to take advantage of modern banking architecture. Despite this overall optimistic picture for the global banking industry, uncertainties loom on the horizon. Our projected growth for africa banking revenue pools of 8. Doing business in ghana banking sector in ghana institute of. Determinants of mobile banking adoption in the ghanaian. Pwc 2018 ghana banking survey 1 contentsa message from our csp 2a message from the executive secretary of ghana association of bankers gab 6a message from our tax leader 81 recapitalising banks. Pdf a critical analysis of key financial performance. It gives a brief introduction to the industry and provides a detailed application of the five forces to the industry.
A pestle analysis will provide a clear path which anyone with good business knowledge can follows. With a wholesale regulatory reform of the sector well under way, the prospects of. Industry analysis an analysis of banking sector in india introduction the liberalization brought in 1991 has swept the economic landscape of thecountry. The analysis will offer an outward look and the environment based external banking on companies because of the widespread. Pwc 2017 ghana banking survey 1a message from our csp 2a message from the executive secretary of ghana association of bankers 4a message from our tax leader 6 1 ccapitalisation of banks 8 2 survey findings 10 3 overview of the economy 24 4 overview of the banking industry 28 5 quartile analysis 30 6 market share analysis 42. The pestel analysis of banking sector is used as a strategic tool which helps to aid and assist the banking company growth.
Most market participants agree that the herculean efforts of the bank of ghana bog, the countrys central bank, during this period prevented bank runs and minimised contagion to the wider economy. The industry comprised thirtyfour 34 licensed banks, seventeen 17 classified as domesticallycontrolled, while the remaining seventeen 17 were foreigncontrolled. History of ghanaian banking in 1953 the bank of the gold coast was set up by the then government and alfred engleston, formerly of the bank of england. Banks in ghana overview, guide to top 10 banks in ghana. How ghana is working to improve the banking sector world. Real gdp growth forecasts from the international monetary fund imf point to a deceleration in all regions, including china and emerging asia figure 2. Empirical findings suggested that, the five forces had contributed to. Analysis of the data reveals that the most important factor that influences customer choice of bank is the cost of service followed by easy access to loan facilities. Macroeconomic context the republic of ghana is west africas second largest economy and has a population of about 25. The major limitation of the study is the inability to include the prefinsap period due scarcity of data. The aim of publishing the report is to provide the public with.
There could very well be greater competition from insurance companies, private equity firms, traditional asset managers, and fintechs in. David kwashie garr open university of malaysia oumaccra institute of technology, ait, accra p. Banking competition, persistence of profit, bank profitability, market power hypothesis, efficientstructure hypothesis, data envelopment analysis. This study therefore sought to critically explore the key financial performance. Fundamental company report provides a complete overview of the companys affairs. Ghana is ifcs third largest exposure in africa in terms of committed investment volume.
A critical analysis of key financial performance indicators. Responses received were analyzed using ttest and linear regression analysis. Dec 25, 2016 the pestel analysis of banking sector is used as a strategic tool which helps to aid and assist the banking company growth. The report highlights developments in the banking sector which were deliberated on during the policy making process. To measure banking competition, lags of the dependent variable is used to derive the level of profit. Astoundingly, some were granted bank licences as recently as 20162017. The analysis was based on 296 respondents from various departments with varied positions. Banks are unable to behave independently and must provide services based on specific laws that affect their growth and offerings. Ghana s banks have performed poorly in the past, offering but a narrow range and inefficient delivery of financial instruments, being strongly biased in their reach to the urban formal sector and, in particular, to the holding of. Swot analysis of banking industry swot analysis of banks. Bglossary of key financial terms, equations and ratios 93. However, banks used 2016 to retrench, lower their risk exposure and attempt to turn around weaknesses in their loan portfolios that were held over from 2015.
With the passage of time, the bank was split into two. The banking industry of bangladesh is presently in a deep crisis. Ghanas banks have performed poorly in the past, offering but a narrow range and inefficient delivery of financial instruments, being strongly biased in their reach to the urban formal sector and, in particular, to the holding of. The ghanaian banking sector had a difficult year in 2015, amid weakening macroeconomic conditions in the country. It gives a brief introduction to the industry and provides a detailed. There could very well be greater competition from insurance companies, private equity firms, traditional asset managers, and fintechs in the corporate lending space. How addressing insolvency is key to improving ghanas business environment covid19 economic impact assessments stay updated on how some of the worlds most promising markets are being affected by the covid19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their longterm growth. The aim of publishing the report is to provide the public with information on performance of the banking sector which. In 20, when we published our first edition of the africa banking industry customer satisfaction survey, our report found that retail customers were most concerned about the financial stability of their banks. Organizational culture and organisational performance. Banking sector report y bank of ghana central bank. Abstract the banking industry is considered to be an important source of financing for most businesses. In the latest forecast, deloitte economists are predicting a 25 percent probability. The data was obtained from nine banks in ghana constituting about 60% of the banking industrys market share, with different origins such as publicdomestic, privatedomestic, pan african and multinational banks.
On the other hand, presently this sector is in acute liquidity crisis due to some reasons. This study assesses banking competition and profitability in ghana from 2007 to 2012. The banking industry is considered to be an important source of financing for most businesses. The nigerian experience 12 2 survey findings 16 3 an overview of the economy 28 4 key developments in the banking industry 32 5 quartile analysis 36 6 market share analysis 56. Banking industry is the driving force to any nation. Determinants of credit risk in the banking industry of ghana. The introduction of the banking act, 1993 act328 in ghana increased the number of bank and nonbank institutions in the financial sector. This essay is aimed at analyzing porters five forces for the banking industry in ghana.
As explained in footnote 9, average efficiency scores, grouped by types of banks, are reported as percentage figures in table 4 below. But its subservient to many factors, particularly to the government and the economy. It helps in shaping the life of human race may be some time merely by exchange which was called barter system, or by transaction or by facilitating advances. Much has changed across africas banking industry in the past three years. Pestle analysis of ghana banking industry free essays. The new promise of open banking across the industry, meanwhile, could pave the way for platform banking. Analysis of financial intermediation and profitability. A critical analysis of key financial performance indicators in the banking industry in ghana article by dominic tetteh sackitey ph.
Financial sector reforms and bank performance in ghana. Growth fell below the rate seen in 2014, while nonperforming loans rose significantly. Porter five forces analysis for the banking industry in. In the last 12 months, several banks have collapsed in ghana. During the period from 2006 to 2011, the retail banking segment had seen significant growth and is expected to grow even faster in 2017. May 14, 2019 the swot analysis of banking industry. The bank of ghana s banking sector report is published after each monetary policy committee mpc meetings. Preface the bank of ghana s banking sector report is published after the monetary policy committee mpc meetings.
The study analyses the welfare performance of banks lending services in the. A case study of the ghanaian banking industry richard k. For the people who were used to many years of ambassador cars with various models notdifferent in anyway. Also, the study analyses determinants of banks performance using not. Alist of banks in ghana as at june 2018 92appendix. The bank of ghana serves as the countrys central monetary authority. This reflects continued high levels of growth in the industry sector, driven by mining and petroleum. The report includes financial and swot information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. All available data is presented in a comprehensive and easily accessed format.
This pestle analysis highlights key factors affecting the banking industry. A case study of ghana commercial bank ltd and mer chant bank of ghana ltd. Financial sector reforms and bank performance in ghana books. Apr 05, 2017 the banking industry affects all countries. While delinquent debts have undermined sector stability and remain a key challenge, the countrys lenders continue to grow their assets and remain profitable.
In september 2017, ghanas economy expanded for the fifth successive quarter by 9. Summary this report covers developments in the ghanaian banking sector as at the end of june 2018. The banking industry has seen significant developments over the last few years. The changing face of banking in ghana and the implications. Clearly, there are significant implications about the changes in the ghanaian banking sector for the economy over the years. Fast forward to 2016 and the rules of the game have changed. Primary data was collected through questionnaires from a sample size of 84 management staff. Insights pwcs 19th annual global ceo survey and banking banana skins survey 9. Analysis of the ghana banking industry fulltext html xml download as pdf size. With the improvement in the macroeconomic environment such as a drop in interest rates and a generally stable inflation, banking in ghana has become increasingly competitive. The closer is a group of banks to the cost minimisation frontier, the higher is the.
The main objective of the study is to examine the determinants of mobile banking adoption as a communication in the banking industry with specific emphasis on the access bank ghana limited. Pwc 2017 ghana banking survey 1a message from our csp 2a message from the executive secretary of ghana association of bankers 4a message from our tax leader 6 1 ccapitalisation of banks 8 2 survey findings 10 3 overview of the economy 24 4 overview of the banking industry 28 5 quartile analysis 30 6 market share analysis 42 7 profitability and efficiency 50. Also, as indicated in the 2014 ghana banking survey report, that the banking industry is fairly saturated and that the industry is comprised of 27 universal banks, 7 rural and community banks, and 58 nonbanking financial institutions including finance houses, savings and loans, leasing and mortgage firms. According to king, mckay, marshall, lee and viehland 2008 online banking or electronic banking e banking includes various banking activities conducted via the internet from home, business, or on the road opposed to at a physical bank location. Assessing credit risk management practices in the banking. Emerging developments in the banking industry of ghana. The amount of default loan is increasing day by day. In 1953 the bank of the gold coast was set up by the then government and alfred engleston, formerly of the bank of england. Ghana, barclays bank ghana and fidelity bank as the case study.
Financial sector overview ghana 2 fcpf forest carbon partnership facility fit feedintariff gcb ghana commercial bank gcf green climate fund gcnet ghana community network services limited gdp gross domestic product gedap ghana energy development and access project gef global environment facility gog government of ghana. The banking system in ghana consists of a national network of licensed and statutory financial. Recapitalization of banks has been a topic of discussion between politicians. Ifcs current program in ghana consists of 26 projects, comprising of investments in infrastructure, manufacturing, agribusiness, and services, and financial institutions. The countrys lenders have maintained their stability, avoiding the domestic crises that have befallen some of their emerging and frontier market peers, and sidestepping much of the fallout from the global. Ghanas banking and finance industry consists of 28 private banks. First of all, the influx of foreign banks, especially from nigeria, has led to intense competition in ghanas banking industry, with respect to size of deposits and the size of market share of the various banks. Sample sizes of 300 respondents were selected from three selected banks operating in ghana. The results presented here are the efficiency scores that are computed for the five groups of banks categorised by ownership and listed in section 2 above.
With a marine coastline of 550 kilometres stretching from aflao in the east to half assini in the west, the fishing industry plays a major role in sustainable livelihoods and poverty reduction in several households and communities. Efficiency 6 asset quality 1 27 11 31 14 36 20 41 17 38 22 45 7. Analysis of the ghana banking industry article pdf available in open journal of business and management 801. Banking industry liberalisation in ghana sciencedirect.