Capital Adequacy and Performance of Listed Universal Banks; considering the Basel Accord Framework

Sampson Agyapong Atuahene, Yusheng Kong, Geoffrey Bentum-Micah, Abigail Konadu Aboagye

Abstract


This study examines the impact of banks’ capital on the performance of banks. The studies adopted multiple OLS regression model and heteroscedasticity test to check how homogeneous or heterogeneous the variables are. Time-series data covering the period 2008-2017 for Ghanaian listed universal banks was considered This study found that banks net profit after tax, banks outstanding loans and banks capital have a positive and a significant relationship with banks total asset base as a performance indicator. It also discovered through correlational analysis that is a strong link between banks outstanding loans (credit advancement) and banks performance.


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