How bank recapitalization and ownership shape agricultural finance in Ghana: A note

Akwasi Agyeman Britwum (), Franklin Nantui Mabe () and Oluyemi Theophilus Adeosun ()

Modern Finance, 2025, vol. 3, issue 2, 13-28

Abstract: This study examines the heterogeneous effects of recapitalization and the origin of banks on agricultural finance in Ghana, using panel data from 2015–2018 (pre-recapitalization) and 2019–2022 (post-recapitalization). Fixed effects regression with robust standard errors was employed, incorporating macroeconomic indicators (interest rate, inflation) and bank-specific variables (capital adequacy ratio, non-performing loans). Results show that recapitalization improved agricultural financing. Regional banks increased lending compared to foreign banks, while indigenous banks reduced lending. Macroeconomic and bank-specific factors also influenced agricultural finance differently. Policies should incentivize domestic banks to support the agricultural sector in enhancing food security and reducing dependence on foreign aid.

Keywords: Recapitalization; agricultural finance; impacts; microeconomic indicators; indigenous banks; foreign banks; regional banks (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mf-journal.com/article/view/231 (text/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdy:modfin:v:3:y:2025:i:2:p:13-28:id:231

Access Statistics for this article

Modern Finance is currently edited by Adam Zaremba

More articles in Modern Finance from Modern Finance Institute
Bibliographic data for series maintained by Adam Zaremba ().