Analysis of Non-Interest Income of Commercial Banks in Ghana

Basil Senyo Damankah (), Olivia Anku-Tsede and Albert Amankwaa

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014, vol. 4, issue 4, 263-271

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.

Keywords: Non-interest income; Nontraditional activities; Revenue; Banks; Ghana (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:4:y:2014:i:4:p:263-271

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