The impact of universal banking on the banking industry in Ghana
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Date
2008-11-17
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Abstract
There has been an increasing convergence between the activities of investment and commercial banks. The general trend has been towards downstream universal banking where banks have undertaken traditionally non-banking activities such as investment banking, insurance, mortgage financing, securitization, and particularly, insurance. The economic debate revolves around certain questions: first, will banks be more or less efficient than existing producers when they provide the proposed service? Second, will the extension of banking powers affect the stability of the financial system thereby making customers more satisfied? The study tried to find out whether the profitability, asset quality and liquidity of the banking industry has been better in the period of introduction of universal banking than before.
Views of 298 bank customers were sought as to whether they are satisfied with the services being provided. Paired sample t-test was conducted to find significant differences in the means of the secondary data which measured financial performance of the banking industry while descriptive presentation in charts and cross-tabulations were used for the survey bank customers. It was found that there were large significant effects of universal banking on the profitability of the banking industry. The study failed to recognize significant effect of universal banking on the asset quality of the banking industry. The survey indicated much customer satisfaction especially in the automated services being provided and a competitive banking industry but banks have to reduce turn-around time at the banking halls. However, inconsistencies in the figures from annual banking reports and style of presentation were some of the limitations. The study should also have covered low-rated banks in the industry.
Description
A thesis presented to the Department of Department of Accounting and Finance, KNUST School of Business, Kwame Nkrumah University of Science and Technology in partial
fulfilment of the requirements for the award of Master of Business Administration in Banking and Finance, 2008