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Unleashing Ghana’s Banking Sector Might: A Comprehensive Analysis of Contributions, Competitiveness, Challenges and Policy Recommendations

Author

Listed:
  • Daniel Bamfo

    (School of Graduate Studies, Valley View University, Accra, Ghana)

Abstract

This study examines the contributions, competitiveness, and difficulties of Ghana’s banking industry through a thorough analysis of the literature. The sector, which contributes to Ghana’s GDP and supports SMEs and government projects, is beset by challenges such as high non-performing loan rates and expensive borrowing. However, secondary data from sources like the Bank of Ghana and scholarly journals show that the sector has a significant impact on GDP growth, employment creation, and financial inclusion. Through fintech and digital banking, it contributes to financial inclusion as well, despite ongoing obstacles like the digital divide and expensive service fees. The analysis points out important patterns and weaknesses and makes recommendations for strengthening financial inclusion, regulatory frameworks, and credit risk management. It recommends boosting technological innovation, cutting compliance costs, and improving risk management in order to increase competitiveness. Subsequent investigations ought to tackle the dynamically changing banking industry in order to bolster Ghana’s economic expansion and stability.

Suggested Citation

  • Daniel Bamfo, 2024. "Unleashing Ghana’s Banking Sector Might: A Comprehensive Analysis of Contributions, Competitiveness, Challenges and Policy Recommendations," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 4481-4489, October.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:4481-4489
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    References listed on IDEAS

    as
    1. Kwadwo Antwi-Wiafe & Grace Nkansa Asante & Paul Owusu Takyi, 2023. "Is financial technology a complement or substitute for domestic financial institutions in Ghana?," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 15(4/5), pages 424-443, July.
    2. Thomas Adoma-Worae & Samuel Addo-Paintsil & Benjamin Yeboah, 2021. "Benefits of Domestic Bank Loans to Private Companies in Ghana," The Journal of Accounting and Management, Danubius University of Galati, issue 2(11), pages 186-196, August.
    3. Koomson, Isaac & Koomson, Paul & Abdul-Mumuni, Abdallah, 2023. "Trust in banks, financial inclusion and the mediating role of borrower discouragement," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1418-1431.
    4. David Kwabla Adegbedzi & Pravin Narayan Mahamuni, 2024. "The recapitalisation of universal banks and SME development in Ghana," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 8(4), pages 425-442.
    5. Eric Gonu & Paul Mensah Agyei & Opoku Kofi Richard & Mary Asare-Larbi, 2023. "Customer orientation, service quality and customer satisfaction interplay in the banking sector: An emerging market perspective," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2163797-216, December.
    6. Emmanuel Asafo-Adjei & Ebenezer Boateng & Zangina Isshaq & Anthony Adu-Asare Idun & Peterson Owusu Junior & Anokye M Adam, 2021. "Financial sector and economic growth amid external uncertainty shocks: Insights into emerging economies," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-26, November.
    7. Oluwatoyin Esther Akinbowale & Heinz Eckart Klingelhöfer & Mulatu Fekadu Zerihun, 2020. "Analysis of cyber-crime effects on the banking sector using the balanced score card: a survey of literature," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 27(3), pages 945-958, June.
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