Effect Of The Minimum Capital Requirements On Performance Of Selected Banks In Ghana

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.