The Structure, Conduct and Performance of Commercial Banks in Ghana (Published)
This paper analyses the structure, conduct, and performance of commercial banks in Ghana. The empirical investigation uses two different measures of concentration to represent market structure and a market share variable to capture the effect of Market conduct on bank performance, and two accounting measures: return data on Return on Assets (ROA), return on equity (ROE) to represent banks’ performance. Annual time series data ROA, ROE and other ratios were collected from nineteen commercial banks over the period 2007 -2012. The results indicated that market concentration and market share significantly determines profitability in Ghana, signifying the strong acceptance of the SCP hypothesis. Consequently, the research suggests the need for improvement in bank capitalization, bank size, service product innovation and effective liquidity management for the Ghanaian banking industry
Keywords: Assets, Concentration, Conduct, Deposits, Market Share, Performance, Structure