DETERMINANTS OF BANK PROFITABILITY IN GHANA
In Ghana, as in most countries, regulation rather than competition has defined the structure and range of financial products and services a bank can offer, the types of assets and liabilities it can hold and issue as different kinds of banking institutions licensed to serve a diverse clientele base. There are currently thin lines of difference among them as the products and services rendered by the different bank types have converged over time and emerging non-bank financial institutions now compete with the banks in terms of the provision of similar kind of financial instruments and services (Mahamudu et al, 2005). Bank deposits, for example, compete now with other liabilities of financial intermediaries, such as mutual funds. This phenomenon seems to justify the commencement of universal banking in Ghana, whereby banks originally licensed as merchant or development banks can now be issued universal banking licenses with higher paid-up capital. This move was to eliminate the economic costs of maintaining regulatory barriers, which had risen although the barriers had become less effective. The universal banking concept is not only aimed at eliminating the differences due to similarity in bank products/services rendered but also restrictions on branch network of different bank types, as banks become 'universal'. Currently, the banking industry comprises of twenty (20) major banks and one hundred and twenty (120) rural and community banks. The major banks comprise 8 commercial banks, 3 development banks, 2 merchant banks, 6 universal banks and one apex bank (Mahamudu et al, 2005).

FOR FULL VERSION OF TEXT
Contact SAMUEL KWAKU OBENG
SAMVEN'S RESEARCH AND CONSULTANCY UNIT LIMITED
P.O.BOX GP18174, ACCRA
Location: Nungua-ACCRA, BEHIND THE WASHING BAY, IN-BETWEEN NUNGUA KANTAMANTO AND RAVICO/ROYAL MAJESTY HOTEL

Email: [email protected]
Tel: 0244085917/0285312881/0275828011
Our Services
Market/Any Business and Educational Research
Business Forecast
Data Analysis
Business Plan/Proposal
Thesis/Dissertation/Project Work Training
Research Training
Research Software Training (e.g. SPSS)
Building Plan Designing
Graphic Designs
Website Designing and Hosting
Video Editing and Photo Slides Making
Document Burning on CD /DVD
Printing Press
And Any other Business and Educational Consultancy




Source: