ISSN: 2222-6990
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This paper examines the relationship between Capital adequacy, Cost Income ratio and performance of banks in Ghana. The study uses a sample of banks listed on the Ghana Stock Exchange and data for the periods ending 2013 and 2018 was gathered from their annual reports and regression analysis was carried out using Statistical Software Package, STATA version 15.
The study revealed that capital adequacy is negatively related to performance, as measured by return on assets (ROA) and return on equity (ROE). However, it is statistically insignificant against return on assets but significant in the case of return on equity. The study also revealed that cost-income ratio has a negative relationship with ROA and ROE and it is statistically significant.
For total debt to equity, it is negatively related to ROA and ROE. However, the relationship is statistically significant in the case of ROA but insignificant in the case of ROE. Also, bank size has a negative relationship with performance, both ROA and ROE and it is statistically significant. Lastly, assets growth has a positive relation with both ROA and ROE but it is statistically insignificant in the case of ROA and statistically significant in the case of ROE.
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In-Text Citation: (Antwi, 2019)
To Cite this Article: Antwi, F. (2019). Capital Adequacy, Cost Income Ratio and Performance of Banks in Ghana. International Journal of Academic Research in Business and Social Sciences, 9(10), 168–184.
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