Financial Sector Development in Ghana: Exploring Bank Stability, Financing Models, and Development Challenges for Sustainable Financial Markets

321 Pages·2023·6.758 MB·English

by  James Atta Peprah, Evelyn Derera, Harold Ngalawa, Thankom Arun

PALGRAVE MACMILLAN STUDIES IN
BANKING AND FINANCIAL INSTITUTIONS
SERIES EDITOR: PHILIP MOLYNEUX
Financial Sector
Development in Ghana
Exploring Bank Stability, Financing Models,
and Development Challenges
for Sustainable Financial Markets
Edited by
James Atta Peprah
Evelyn Derera
Harold Ngalawa
Thankom Arun
Palgrave Macmillan Studies in Banking and Financial
Institutions
Series Editor
Philip Molyneux, Bangor University, Bangor, UK
The Palgrave Macmillan Studies in Banking and Financial Institutions
series is international in orientation and includes studies of banking
systems in particular countries or regions as well as contemporary themes
such as Islamic Banking, Financial Exclusion, Mergers and Acquisitions,
Risk Management, and IT in Banking. The books focus on research and
practice and include up to date and innovative studies that cover issues
which impact banking systems globally.
· ·
James Atta Peprah Evelyn Derera
·
Harold Ngalawa Thankom Arun
Editors
Financial Sector
Development
in Ghana
Exploring Bank Stability, Financing Models,
and Development Challenges for Sustainable
Financial Markets
Editors
James Atta Peprah Evelyn Derera
Department of Applied Economics College of Law and Management
University of Cape Coast Studies
Cape Coast, Ghana University of KwaZulu-Natal
Pietermaritzburg,
Harold Ngalawa South Africa
College of Law and Management
Studies Thankom Arun
University of KwaZulu-Natal Essex Business School
Durban, South Africa University of Essex
Colchester, UK
ISSN 2523-336X ISSN 2523-3378 (electronic)
Palgrave Macmillan Studies in Banking and Financial Institutions
ISBN 978-3-031-09344-9 ISBN 978-3-031-09345-6 (eBook)
https://doi.org/10.1007/978-3-031-09345-6
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
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Acknowledgements
The editors acknowledge the scholarly contributions of the authors for
each of the chapters. We sincerely appreciate the generous time and effort
they put into the research and writing of these chapters. We also sincerely
appreciate the contributions of anonymous referees for their invaluable
and constructive feedback that has helped to enhance the quality of this
book. This collection of edited chapters on Financial Sector Develop-
ment in Ghana would not have been possible without the selfless support
of Palgrave Macmillan Publishers. We acknowledge their support with
appreciation. Finally, we thank the Universities of Cape Coast in Ghana,
KwaZulu-Natal in South Africa and Essex in the UK, to which the editors
are affiliated.
v
Contents
1 Introduction 1
James Atta Peprah, Harold Ngalawa, Thankom Arun,
and Evelyn Derera
2 What Really Drives Financial Sector Development
in Ghana? 13
Isaac Kwesi Ofori and Camara Kwasi Obeng
3 Harnessing Financial Innovation for Financial
Inclusion in Ghana 55
Joshua Sebu, Eric Amoo Bondzie, Ewura-Adwoa Ewusie,
and Jonathan Tawiah-Mensah
4 Financial Inclusion and Monetary Policy Effectiveness
in Ghana 81
William Godfred Cantah, James Atta Peprah,
and Paul Owusu Takyi
5 Gendered Financial Behaviour in Ghana:
A Comparative Study with South Africa 105
Shoba Arun, Samuel Annim, Udichibarna Bose,
and Thankom Arun
vii
viii CONTENTS
6 Bank Competition and Financial Sector Stability
in Ghana 133
William Godfred Cantah, Kwabena Nkansah Darfor,
Jacob Nunoo, Benedict Afful Jr.,
and Emmanuel Agyapong Wiafe
7 Macroeconomic Determinants of Banking Instability
in Ghana 155
Harold Ngalawa and Evelyn Derera
8 Financial Dualism in Ghana: The Implications
for Monetary Policy on Loan Variations 183
P. Adjei and R. K. Ayisi
9 Revisiting MSMEs Financing Through Banking
Reform Processes: Assessing the Ghanaian Legal
Experiences 207
Francis Kofi Korankye-Sakyi, Omo Oyeniyi Abe,
and Elijah Tukwariba Yin
10 Effectiveness of Credit Risks Management Policies
Used by Ghanaian Commercial Banks in Agricultural
Financing 231
Abraham Nyebar, Adefemi A. Obalade,
and Paul-Francois Muzindutsi
11 Evaluation of Lending Methodologies Used
by Ghanaian Banks to Extend Credit to SMEs 265
Kofi Nyarko Gyimah, Joseph Olorunfemi Akande,
and Paul-Francois Muzindutsi
Index 295
Notes on Contributors
Abe Omo Oyeniyi is a law Lecturer at the Huddersfield Business School,
University of Huddersfield, Queensgate Huddersfield, UK. He specialises
in teaching commercial, indigenous dispute resolution, contract law and
practised as a corporate and commercial law Attorney of Nigeria for
several years. He had previously taught at the Universities of Pretoria and
Cape Town, both in South Africa, and Afe Babalola University, Nigeria.
In 2015/2016, he was a Fulbright Scholar at Loyola University, Chicago,
USA. He is currently also serving as a Research Associate at the Centre for
Comparative Law in Africa, University of Cape Town, South Africa. He
has spoken at local and international conferences on various areas of his
research interest and has published in peer-reviewed journals. He serves
on the Executive Council of the International Law Association, Nigerian
Branch and a member of the IUCN World Commission on Environ-
mental Law, Nigerian Bar Association, Global Business & Human Rights
Scholars Association, and the Business & Human Rights Teaching Forum
Meeting.
Adjei Prince is an Economist with the Department of Economics,
University of Ghana. He is an experienced academic and researcher whose
keen focus is on Economics of Education and Labour markets. His prime
research goal is to study the forward and backward linkages between
school to work transitions and how institutions play a role in ensuring
harmony in the development of skills. As a development economist, his
research cuts across several fields including poverty and inequality, applied
ix
x NOTESONCONTRIBUTORS
microeconomics and economic policy. He holds a Ph.D. in Development
Economics, M.Phil. and Bachelor’s degree in Economics all from the
University of Ghana.
Afful Benedict Jr. is a Lecturer in Economics, obtained his Ph.D.
and M.Phil. in Economics from the University of Cape Coast where he
has considerably taught and research. He also has a Diploma in Project
Management from Institute of Commercial Management UK, certificate
in Research Ethics Training Curriculum, fhi 360, USA, and certificate
in Cost Analysis in Education, UNESCO and International Institute for
Educational Planning. In the past, he has worked with Ghana Statistical
Service, Electoral Commission of Ghana, IFPRI, ILO, UNICEF, Univer-
sity of Development Studies and Department of Economics, University
of Cape Coast.
Akande Joseph Olorunfemi is an Associate Professor in Accounting
Science with Walter Sisulu University, South Africa and a member of
multidisciplinary research working groups. His research interest is in the
broad area of finance and accounting with expertise in panel data and
time series analysis.
Annim Samuel Kobina is a Professor of Economics with specific
concentration on Micro Development Economics and applied Micro
econometrics at the Department of Economics, University of Cape Coast,
Ghana. He assumed office as the Government statistician at the Ghana
Statistical Services on March 1, 2019. He earned Bachelor of Arts, Master
of Philosophy and Doctor of Philosophy degrees in Economics at the
University of Cape Coast (Ghana), University of Ghana (Ghana) and
University of Manchester (United Kingdom), respectively. Following the
completion of his doctoral studies, he was engaged at the University of
Manchester and University of Lancashire, both in the UK, in the respec-
tive capacities of Research Associate and Post-doctoral Research Fellow.
He has approximately 20 years of teaching experience in Universities both
in Ghana and abroad, and has more than 40 peer-reviewed journal arti-
cles, book chapters and technical reports to his credit. His publications
are available in academic outlets such as World Development, Journal
of Development Studies, Journal of International Development and the
Oxford University Press. Samuel passionately supports national and global
development agenda by providing professional service to the National