Abstract:
The research aimed to analyze the factors that determine the profitability of
commercial banks in Ghana using the CAMEL methodology, as well as to
differentiate the effects of different types of bank ownership. A 12-year (2010-2021)
panel data was collected from 9 listed commercial banks selected using purposeful
sampling technique. Using a panel regression technique (pooled least square and
random effect), the findings indicated that private banks outperformed their public
sector counterparts in terms of capitalization, asset quality, management efficiency,
and profitability, likely due to greater investment in cost-reducing strategies. It was
also found that the CAMEL framework has statistically significant effect on the
banks’ performance. It was concluded that to remain competitive and resilient to
economic shocks, efficiency goals should be prioritized, staff should have a solid
grasp of CAMEL, and there should be robust engagement between regulators and
banks. It was therefore recommended that commercial banks should improve credit
risk management and branch out into non-traditional areas to boost profitability and
sustain expansion.
Description:
A Dissertation in the Department of Accounting,
School of Business, submitted to the School of
Graduate Studies, in partial fulfilment of the
requirements for the award of the degree of
Master of Business Administration
(Accounting)
in the University of Education, Winneba
