THE IMPACT OF BANK REGULATION ON THE FUNCTIONS OF COMMERCIAL FINANCIAL INSTITUTIONS IN GHANA: A CASE STUDY OF HFC BANK.
1 . 1 Background of the Study3
1 . 2 Statement from the Problem4
1 . 3 Study Objectives5
1 . 4 Analysis Questions5
1 . 5 Value of the study. 5
1 ) 6 Firm of the Study5
1 . several Limitations with the study6
Literary works Review7
installment payments on your 1 Meaning of Terminologies7
installment payments on your 2 Legislation in the banking industry8
2 . 2 . 1 Objectives of bank regulation9
2 . installment payments on your 2 General principles of bank regulation10
2 . 2 . 3 Devices and requirements of bank regulation11
installment payments on your 3 A result of violation of Bank regulation14
2 . some Measuring Financial institution performance16
several. 0 Introduction17
3. 1 Research Design17
3. two Population18
3. 2 . one particular Sample size18
3. installment payments on your 2 Testing Technique18
several. 3 Data collection Method18
3. 4 Study Instrument18
3. 5 Analytical Technique19
1 ) 1 History of the Analyze
The Bank sector is extremely competitive, with banks competitive among every other's and also with nonbanks and other financial institutions (Hull, 2002). The Ghanaian banking sector has been segmented into Merchant, Commercial and development banks (Hinson ain al, 2006). Bank of Ghana in 2004, provided a level grounds for all in the banking Sector by bringing out the idea of Widespread Banking, wherever any Financial institution enjoy the flexibility to engage in permissible financial business devoid of restrictions and eliminated the compartmentalization following Banks fulfill the prescribed Capital requirements (Hinson et ing, 2006). Many Banks in Ghana are now universal without much relation to their names or perhaps earlier functions.
HFC Bank (Ghana) Limited was formerly referred to as Home Finance Company and qualified as home loan financing organization. It was designed on May 7, 1990 as being a private limited liability company and started business about December a couple of, 1991. In August you, 1994; Financial institution of Bekwai, ghana provided HFC with a nonbanking financial institution qualified and on March 5, year 1994 HFC was converted into a general public limited liability company and was listed on the Ghana Stock market on March 17, 1995. Home Finance Company was change into HFC Bank (GH) Limited on the 17th November, the year 2003 when the Financial institution of Ghana issued Residence Finance Company with all the Universal Bank License. HFC Bank remains the leading and first home loan finance organization in Ghana with the eyesight to become a leading Universal Financial institution on the western part of the country Africa and mission to develop wealth and better your life for their consumers (www.hfc.gh.com, 2012). The? subset of HFC is a representative clothing permitted to transact business.
1 . 2 Assertion of the Difficulty
Regulation takes on an important part in controlling the numerous relationships between a strong and the external environment. Therefore , regulation appears have a substantial effect on firm performance. Baucus and Baucus (1997) studied the efficiency of various Good fortune 300 companies over a five-year period subsequent indictment. The results again showed that illegality correlated negatively with long-term functionality. This may be attributed to several factors. First, sanctions and protracted legal costs are usually considerable. Second, illegality hurts the firm's manufacturer equity and causes some potential investors to shy away from trading (Elkins, 1976). Third, product sales volumes lessen and capital costs without doubt rise (Komisarjevsky, 1983). One of many conclusions from the study is that stakeholders would not differentiate with regards to the severity standard of the wrongdoing, and that firms with multiple convictions suffered with lower functionality than those found guilty of a one conviction. Langus and Motta (2007) researched the issue by a European perspective by analyzing abnormal industry returns towards the stock cost of companies that broken European anti-trust laws. The results proved prior study that revealed that breaking...