Analysis of Non-Interest Income of Commercial Banks in Ghana
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 4
Abstract
Banks in recent times have changed their focus from depending heavily on interest income to generating revenue from fee generating activities. This paper identifies and discusses some factors common with banks that engage in non-interest earning activities in Ghana. It was found that smaller banks are more involved in non-interest earning activities, relative to their larger counterparts. Higher interest income, customer deposits, exposure to risk and liquidity are also found to be common factors among banks in Ghana that concentrate more non-interest income generation. The Central Bank’s Prime rates also affect banking operations and is positively related to bank’s engagement in nontraditional activities. These results have implications for bank regulators, who must institute regulations toward harmonizing the various sources of bank income as against likely exposures to risk.
Authors and Affiliations
Basil Senyo Damankah, Olivia Anku-Tsede, Albert Amanikwaa
Keywords
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- EP ID EP94705
- DOI 10.6007/IJARAFMS/v4-i4/1343
- Views 86
- Downloads 0
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