Version 1
: Received: 25 November 2019 / Approved: 26 November 2019 / Online: 26 November 2019 (10:58:44 CET)
Version 2
: Received: 29 November 2019 / Approved: 29 November 2019 / Online: 29 November 2019 (11:23:43 CET)
Version 3
: Received: 18 December 2019 / Approved: 19 December 2019 / Online: 19 December 2019 (13:05:29 CET)
How to cite:
Juabin, M. Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints2019, 2019110314. https://doi.org/10.20944/preprints201911.0314.v1
Juabin, M. Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints 2019, 2019110314. https://doi.org/10.20944/preprints201911.0314.v1
Juabin, M. Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints2019, 2019110314. https://doi.org/10.20944/preprints201911.0314.v1
APA Style
Juabin, M. (2019). Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints. https://doi.org/10.20944/preprints201911.0314.v1
Chicago/Turabian Style
Juabin, M. 2019 "Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score" Preprints. https://doi.org/10.20944/preprints201911.0314.v1
Abstract
A robust bank industry is a major player in the stability of an economy. By way of financial ratios and Z-score, the study analysed UT Bank’s financial performance prior to the recent bank sector reforms. Annual financials over a four year period were used. Debt management practices of UT Bank per the results obtained were quite on the hind side. Leverage and risk variables were poorly handled. UT Bank would have been unable to meet creditors’ claims considering the mean average values of debt-to-assets and debt-to equity ratios of 0.76 and 0.90 respectively. The entire bank sector will be put on sound footing on if credit management practices of individual banks are refreshed. The bank industry regulator should tighten its supervisory and monitoring role over banks to help detect early signs of non-performing banks. The study further recommends that statutory lending limits of banks be re-enforced to uphold the threshold of 10 percent for unsecured loans and 25 percentage for secured loans of net owned funds of the bank.
Bank, Debt, Distress, Performance, Credit Management Practice, Z-score
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
