Recapitalization of banks has been a topic of discussion between
politicians, economists, bank regulators, academicians and the general public
due to its role in the country’s economic growth. This reform has been
implemented in a number of countries to improve a strong banking system of
which Ghana is not an exception. The main objective of the study is to ascertain
the effects of recapitalization on the Ghanaian banking sector. In a decade
(2007 to 2017) there have been 3 various recapitalizations (2007, 2012 and 2017) of the Ghana
banking industry. The study is conducted to prove if the recapitalization of banks
has been worth it using the 2012 exercise as the benchmark. Various literatures are reviewed, and scholars cited.
The study adopts quantitative research
technique based on ex-post factor design. It uses secondary data on the
research variables (cost to income ratio, profit before tax, non-performing
loans, return on assets, return on equity, Net interest margin, capital adequacy ratio, liquidity ratios, asset quality
ratios) over the period 2007 to 2018. Analytical techniques of both descriptive
statistics and independent sample test were adopted for the study. The t-test for equality of means was used to
ascertain evidence of statistically significant difference in banking sector performance indicators and the Levene’s test for equality of variance was
also adopted. The study concludes that banking recapitalization has the potential to promote the performance of banks
in the industry. Hence it was recommended that the central bank (BoG) initiates
sufficient regulatory measures to sustain the benefits of banking
recapitalization to benefit depositors and the nation as
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