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:
Matey, J. Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints2019, 2019110314. https://doi.org/10.20944/preprints201911.0314.v3
Matey, J. 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.v3
Matey, J. Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints2019, 2019110314. https://doi.org/10.20944/preprints201911.0314.v3
APA Style
Matey, J. (2019). Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score. Preprints. https://doi.org/10.20944/preprints201911.0314.v3
Chicago/Turabian Style
Matey, J. 2019 "Financial Performance Analysis of Distressed Banks in Ghana: Exploration of Financial Ratios and Z-score" Preprints. https://doi.org/10.20944/preprints201911.0314.v3
Abstract
A robust bank industry is a major player in the stability of an economy. The operational efficiency and stability of banks are therefore paramount. By way of financial ratios and Z-score, this study analysed UT Bank’s financial performance prior to the 2017 bank sector reforms in Ghana. Annual financials over a ten year period (2007-2016) were used. Debt management practices of UT Bank per the results obtained were quite on the hind side and unimpressive. This was reflected in the poor leverage and risk management variables. 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 benefit if credit management practices of individual banks are refreshed and worked on. 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.
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.
Commenter: Matey Juabin
Commenter's Conflict of Interests: Author