Abstract:
The research studied on the effect minimum capital requirement on
profitability of commercial banks in Ghana. The ordinary pool least square
was used in achieving the objective of the study. The quantitative approach
was employed. The study found that there was negative relationship between
capital requirement on profitability of commercial banks. Also, asset quality
showed a positive relationship with profitability of commercial banks. There
was also a negative relationship between liquidity and profitability of firms.
Finally, the study found that, management efficiency showed a negative effect
on profitability of commercial banks in Ghana. The study recommended that
Board of directors and management of the institutions must ensure utilization
of capital on assets that contribute significantly to the income or profit
generation for the firms.
