Bankers Perception of Economic Determinants of Non-Performing Loans in Ghana

Peter Kwame Kuutol, Benjamin Agyeman and Clement Owusu-Adjei

International Journal of Financial Markets, 2015, vol. 1, issue 3, 93-101

Abstract: The study looks at perception of bankers on economic variables causing Non-Performing Loans (NPLs) in Ghana since 2005. The research was design to use primary data collection from bankers who evaluate loans and approving authorities in the banking sector. This study was steered with the aid of structured questionnaire. In all 401 questionnaires were returned well answered out of 500. Cross sectional Regression analysis was carried out to analyze the impact of Interest Rate, Energy Crisis, Unemployment, Inflation and Exchange Rate on the Non-Performing Loans in the Ghanaian banking sector. The study concluded that Bankers in Ghana identify Interest Rate, Energy Crisis, Unemployment, and Exchange Rate to have significant positive relationship with Non-Performing Loans. As the exchange rate drives weaken other macro-economic indicators in the Ghanaian economy, there is the need for government to arrest the exchange rate to make the economy resilience.

Keywords: Non-performing loans; bankers’ perception; energy crisis; Banking Sector; Ghana (search for similar items in EconPapers)
Date: 2015
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