The impact of monetary policy on banks stability in ghana
| dc.contributor.author | Akpetor Elikem Nelson | |
| dc.date.accessioned | 2024-01-12T10:24:10Z | |
| dc.date.available | 2024-01-12T10:24:10Z | |
| dc.date.issued | 2023 | |
| dc.description | A thesis submitted to the institute of distance learning, kwame nkrumah university of science and technology in partial fulfilment for the award of master of science accounting and finance. | |
| dc.description.abstract | Policy transmission mechanism is the chain reaction that occurs when changes in monetary policy rates have an effect on the economy. Despite the relevance of monetary policy instruments there is minimal indication of research on the issue in controlling the economy. This study sought to examine the impact of monetary policy on banks stability in Ghana. The data were included 12 years spanning 2009 to 2021. This research used the Hausman test to choose between the Fixed and Random Effect Panel Estimation Method. Based on the Hausman test results, the study cannot reject the null hypothesis that the random effects are uncorrelated with the regressors. This suggests that the random effects estimator is consistent and efficient, and therefore appropriate for the model. Based on the regression analysis, the study finds that MPR, MS, RR, DIV, and BSZ have statistically significant effects on BSTAB, while TB has an insignificant effect. The findings suggest that changes in the monetary policy rate, the money supply, the reserve requirements, have significant impacts on the level of bank stability in Ghana. Based on the findings of the regression analysis, the study recommends that. The Bank of Ghana should continue to monitor and adjust the monetary policy rate (MPR) in response to changes in inflation, economic growth, and other macroeconomic factors. This can help to stabilize the banking sector and support lending to businesses and households. Banks should explore new revenue streams and business models to diversify their sources of income and reduce reliance on interest income. This can include expanding into fee-based services such as asset management, wealth management, and insurance. Further research should be conducted to identify other variables that may impact BSTAB. | |
| dc.identifier.uri | https://ir.knust.edu.gh/handle/123456789/15075 | |
| dc.language.iso | en | |
| dc.publisher | KNUST | |
| dc.title | The impact of monetary policy on banks stability in ghana | |
| dc.type | Thesis |