The Impact of Bank Regulation on the Operations of Commercial Banks in Ghana: a Case Study of Hfc Bank.
THE IMPACT OF BANK REGULATION ON THE OPERATIONS OF COMMERCIAL BANKS IN GHANA: A CASE STUDY OF HFC BANK.
Contents CHAPTER ONE 3 INTRODUCTION 3 1. 1 Background of the Study 3 1.2 Statement of the Problem 4 1.3 Research Objectives 5 1.4 Research Questions 5 1.5 Significance of the research. 5 1.6 Organization of the Study 5 1.7 Limitations of the study 6 Chapter Two 7 Literature Review 7 2.1 Definition of Terminologies 7 2.2 Regulation in the banking industry 8 2.2.1 Objectives of bank regulation 9 2.2.2 General principles of bank regulation 10 2.2.3 Instruments and requirements of bank regulation 11 2.3 Effect of violation of Bank regulation 14 2.4 Measuring Bank performance 16 CHAPTER THREE 17 RESEARCH METHODOLOGY 17 3.0 Introduction 17 3.1 Research Design 17 3.2 Population 18 3.2.1 Sample size 18 3.2.2 Sampling Technique 18 3.3 Data collection Method 18 3.4 Study Instrument 18 3.5 Analytical Technique 19
CHAPTER ONE
INTRODUCTION
1. 1 Background of the Study
The Banking sector is extremely competitive, with banks competing among each other’s and also with non-banks and other financial institutions (Hull, 2002). The Ghanaian banking sector has been segmented into Merchant, Commercial and development banks (Hinson et al, 2006). Bank of Ghana in 2004, provided a level grounds for all in the banking Sector by introducing the idea of Universal Banking, where any Bank enjoy the freedom to engage in permissible banking business without restrictions and eliminated the compartmentalization after Banks meet the prescribed Capital requirements (Hinson et al, 2006). Most Banks in Ghana are now universal without much relation to their names or earlier operations.
HFC Bank (Ghana) Limited was formerly known as Home Finance Company and licensed as mortgage financing institution. It was incorporated on May 7, 1990 as a private limited liability company and commenced business on December 2, 1991. On August 1,
Contents CHAPTER ONE 3 INTRODUCTION 3 1. 1 Background of the Study 3 1.2 Statement of the Problem 4 1.3 Research Objectives 5 1.4 Research Questions 5 1.5 Significance of the research. 5 1.6 Organization of the Study 5 1.7 Limitations of the study 6 Chapter Two 7 Literature Review 7 2.1 Definition of Terminologies 7 2.2 Regulation in the banking industry 8 2.2.1 Objectives of bank regulation 9 2.2.2 General principles of bank regulation 10 2.2.3 Instruments and requirements of bank regulation 11 2.3 Effect of violation of Bank regulation 14 2.4 Measuring Bank performance 16 CHAPTER THREE 17 RESEARCH METHODOLOGY 17 3.0 Introduction 17 3.1 Research Design 17 3.2 Population 18 3.2.1 Sample size 18 3.2.2 Sampling Technique 18 3.3 Data collection Method 18 3.4 Study Instrument 18 3.5 Analytical Technique 19
CHAPTER ONE
INTRODUCTION
1. 1 Background of the Study
The Banking sector is extremely competitive, with banks competing among each other’s and also with non-banks and other financial institutions (Hull, 2002). The Ghanaian banking sector has been segmented into Merchant, Commercial and development banks (Hinson et al, 2006). Bank of Ghana in 2004, provided a level grounds for all in the banking Sector by introducing the idea of Universal Banking, where any Bank enjoy the freedom to engage in permissible banking business without restrictions and eliminated the compartmentalization after Banks meet the prescribed Capital requirements (Hinson et al, 2006). Most Banks in Ghana are now universal without much relation to their names or earlier operations.
HFC Bank (Ghana) Limited was formerly known as Home Finance Company and licensed as mortgage financing institution. It was incorporated on May 7, 1990 as a private limited liability company and commenced business on December 2, 1991. On August 1,