Paper Details
Title The Performance of Rural Banks in Ghana: The Ages Have Past Anything Recommended for the Future

Over the years, the RBs, which are often viewed as the small mans bank, have taken deep roots and have become a sort of inseparable part of the rural credit structure. Despite the role played by the rural banks in the rural financial climate and the effort by the government to energize their growth, their performance within the financial scene, over the last three and half decades has not been up to the expectation. The purpose of this paper is to examine the performance of the rural banks in Ghana by using financial ratios as a tool of measurement. The paper use average time series data obtained from Bank of Ghana and APEX Bank annual reports, covering the existing 127 RCBs in Ghana. The paper contributes to the body of knowledge by providing an indication to policymakers, regulators and shareholders in regards to the rural banks performance. A regression model was developed with return on asset as the dependent variable associated with six explanatory variables. The results of the study pleaded in favor of all the explanatory variables to be the main drivers that influence rural banks performance in Ghana. Notwithstanding the model registered liquidity variable to be insignificant. Key Words: Rural Community Banks, Bank of Ghana, Apex Bank, Performance, Ghana.

Pages 1047-1060
Volume 3
Issue 2
Part 3
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