These are followed by pc banking, eftpos and telephone banking. The aim of the paper was to determine the adoption, challenges and some critical successes of electronic banking in the ghana. The instant interbank transfers powered by the ghana interbank payment and settlement systems ghipss enables customers to transfer funds from their. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Empirical studies from the european banking find mixed results. Where the bank of ghana requires, disclosure for example when a particular bank customer is under investigation by the bank of ghana. Have your paycheck deposited directly into your bank or. Emerging developments in the banking industry of ghana. Financial performance during 20, bank of africaghanaltd was focused on mobilizing cheaper deposits. The impact of electronic banking transaction in ghana. Adding to the chorus of calls for the introduction of a ghanaian antitrust act, the local branch of the global advocacy group cuts consumer unity and trust society, has now asked the government to ensure a currently pending draft.
Committee on e banking in 2003 and also the formulation of guideline on e banking based on the report submitted by the committee in 2003. The chartered institute of bankers cib gh is the body for professional bankers in ghana. The above undoubtedly affected the performance of the ghanaian banking industry. Jul 26, 2017 the bank of ghana has rejected rumors of a proposed merger, or acquisition deal of the national investment bank nib by gcb bank ltd. By 1974, many stateowned banks and development financial. In both circumstances, however, the merged banks always improve their liquidity situation. Bank mergers, competition and liquidity european central bank.
The biggest change to the banking industry in ghana came with the introduction of the atm machine in 1995. We aim to provide the stimulus for the development of competent and more qualified human resources that will enable the banks to offer efficient and competitive services to meet modern day sophisticated demands and satisfaction. Rural banks were first established in ghana in 1976 to provide banking services to the rural population, providing credit to smallscale farmers and businesses and supporting development projects, with the first being in agona nyakrom in central region. Eti reported the acquisition of the trust bank ghana limited ttb and access bank ghana acquired intercontinental bank. Electronic banking and the challenges of the ghanaian. Abstract the introductions of electronic banking products and services have changed the nature and way of financial service delivery to customers in ghana. Zenith bank leads a new wave of digitization in the ghanaian.
The bank of ghana has through recent directives announced measures to streamline certain banking operations including the taxation of certain banking transactions. People are using the digital platforms to purchase goods and services and transact businesses. As indicated in table 1, it was found that atms and branch networks are the most popular electronic banking delivery channels in ghana. Umoren and olokoyo 2007 studied merger and acquisition in nigeria. Bog approved three mergers involving six banks, effectively accounting for three more exits. It was named best bank in longterm loan finance at the 15th edition of the ghana banking awards august 2016. In 2014, gn bank introduced a cash deposit service known as e banking. For instance, in the year, 2012, two major acquisition took place. The bank of ghana has rejected rumors of a proposed merger, or acquisition deal of the national investment bank nib by gcb bank ltd. Overview of the banking industry the banking system as at end march 2016 comprises the bank of ghana, 29 universal banks excluding arb apex bank which is a minicentral bank for rural banks, 9 rural and community banks, 61 nbfis, and 555 mfis. Electronic banking has blurred the boundaries between different financial institutions, enabled new financial products and services, and made existing financial services available in different packages. Banks merger in ghana may suffer setbacks ananeantwi. Fbn bank ghana ltd chartered institute of bankers, ghana.
In order to strengthen the competitive and operational capabilities of banks in nigeria with a view towards returning global and public confidence to the nigerian banking sector and the economy in general, the central bank of nigeria instituted a banking reform in 2004, which saw most of the then existing 89 banks merging with each other. Research has shown that the adoption of ebanking was a business strategy taken by banks in response to customer needs and changing market trends in the banking industry. This follows speculations that the gcb bank has initiated moves to merge, or acquire the national investment bank nib in a deal worth ghc10 billion as part of efforts to increase its gcbs asset base. Electronic banking, more commonly known as e banking, is the newest delivery channel for banking services. Five banks that failed to meet the minimum requirements were merged, namely. The central bank launched its ezwich service in 2008. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements.
House house ghana ghana national information clearing house house house ghana ghana background mission of the ministry of communications and technology is to develop, coordinate, monitor and evaluate the implementation of policies, plans, programmes and projects that help to promote access to. The effect of a merger on the loan market depends on. Merger control 2020 laws and regulations ghana iclg. Higher capital requirements in ghanas banking sector could. The banking sector in ghana is one industry that collects large volumes of data in their daytoday transactions. It discovered that the increased application of e banking worldwide is a function of improvement in information and communications technology ict. E banking definition of e banking electronic banking, also known as electronic funds transfer eft, is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. Zenith bank has repackaged its internet banking service with enhanced functions to make it more userfriendly. The current phase of development of the banking industry in the country, in line with the rest of the world, is the internet banking which tends to provide bank clients with even more convenience. Backed by a huge marketing budget, the bank advertised this product in the mass media.
Immediately after independence in 1957, the bank of ghana was established to take control over the management of the countrys currency. May, 2014 the banking sector in ghana is one industry that collects large volumes of data in their daytoday transactions. As a senior management member in organizations he has worked with, he has been involved in corporate strategy, policy. Gn bank offers mainstream banking services which include cash deposits and withdrawals, savings and loans and financial advice consultation private banking, corporate banking, consumer banking, corporate products, lending products, special services, money transfer. Additionally, bog in july 2018 issued the mergers and acquisition directive. Many are concerned about the impact of these directives and legislations on banking activities and whether these directives are achieving the objectives backing them. In 2014, gn bank introduced a cash deposit service known as ebanking. This has made the transition to electronic banking a necessity for banks in order to be. The commercial banks, for instance, does this on regular and daily bases. A special feature of virtual banking is the physical absence of the person seeking banking services at the premises and out of premises even abroad. Recently the banking sector in ghana has undergone massive transformation which has resulted in some powerful banks acquiring others while others also consolidate. Consolidated bank ghana cbg is a commercial bank in ghana.
The impact of mergers and acquisitions on service quality of banks. Competition and efficiency of commercial banks have been discussed extensively in the literature in the developed countries u. Bank performance, mergers and acquisitions in ghana. This was tipped to be ghanas solution to epayments. The continuous reforms by the central bank bank of ghana have also sparked an increasing trend of mergers and acquisition in the banking industry. Redefining the electronic banking experience zenith bank.
On august 14, 2017, the central bank of ghana bog in its press release announced its approval for the takeover of two indigenous banks, ut bank ltd and. Gtbank ghana to introduce new products payments afrika. Factors that influence internet banking adoption in ghana. Mergers and acquisitions in ghana foreign investor. Research has shown that the adoption of e banking was a business strategy taken by banks in response to customer needs and changing market trends in the banking industry.
In the case of ghana, electronic banking is gradually becoming acceptable to all. Get free research paper on impact of electronic banking on customer satisfaction project topics and materials in nigeria. If you look at the bank of ghana, there was a report that indicated that between 2014 and 2015, there was a growth in mobile money transaction platform from 11. We think it is rather better to merge with an existing bank there and build a bigger bank, mr adusarkodee said, pointing to ecobank ghanas takeover of the trust bank ttb in 2011. The aim is to make banks more resistant to unforeseen shocks and losses. Mergers and acquisitions and banks performance in nigeria. News ghana is ghana s leading online news portal for business in west africa and around the world.
Bank of ghana ezwich report 2008, piloting branchless banking in. The bank of ghana bog already raised the minimum capital requirement twice in the past decade. Harvey university of ghana business school this study analyzes the impact of mergers and acquisition on performance of the acquiring firm using a ttest to test the difference between the average pre and postacquisition performance indicators. There are also regulatory consent requirements in certain industryspecific laws such as the insurance act 2006 act 724 and the banking act 2004 act 673 as amended by the banking act 2007 act 738. E banking conceptual framework remote banking, considered representative for the new economy, consists of electronic transactions between customers and their bank. A useful and wellorganized internal control system is an essential element in managing a bank and a basis for banking institutions operations to be secured. Unibank ghana a midsized financial services provider with total assets of ghs 3. Findings revealed that merger and acquisitions in general has positive impact on the profitability of banks in nigeria.
The study has a total of three chapters and first chapter titled the introduction started with the background of study. Kwabena has over 20 years working experience in corporate finance, banking and consulting in the united states of america and ghana. Iclg merger control laws and regulations covers common issues in merger control laws and regulations including relevant authorities and legislation, notification and its impact on the transaction timetable, remedies, appeals and enforcement and substantive assessment in 55 jurisdictions. An insight into the recent banks consolidation business. Special days were set up to issue special ezwitch cards to bank account holders for free. The banking sector in ghana has seen a tremendous development in information and communication ronic funds transfer at, ing rendered to its customers, but has also reduced the operational cost of the company under ntenance should be carried out to ensure a smooth running of ebanking, atm, telephone banking, barclays bank, customers. International journal of economic development research and investment, vol. Ebanking involves services offered by banks to their private and business customers using computerized support to record, process and transport data automatically or without vouchers. The instant interbank transfers powered by the ghana interbank payment and settlement systems ghipss enables customers to transfer funds from their accounts to any account in realtime. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. The purpose of this research is to explore the influence of performance expectancy, effort expectancy, social influence, facilitating conditions and behavioural intention on consumers adoption of internet banking in ghana. As one of two key west african nation states the other being nigeria, ghana still lacks functioning competition legislation at the close of 2018.
This study was embarked upon to ascertain the impact of accountancy knowledge on the role of electronic banking in the development of financial institutions in nigeria. This is as a result of continuous growth in the economy. Some of the universal banks in ghana are gcb bank, hfc bank, first atlantic bank, cal bank and others. The evolution of digital banking in ghana businessghana. Virtual banking includes all non traditional and electronic means of banking such as atm, phone banking, internet banking ib, credit cards and debit cards etc. Committee on ebanking in 2003 and also the formulation of guideline on ebanking based on the report submitted by the committee in 2003. The role of mergers and acquisitions in firm performance. News ghana is ghanas leading online news portal for business in west africa and around the world.
Initially established as the customs and economic union of central africa udeac, the economic and monetary community of central africa cemac was created in 1994 as a customs and monetary union under the leadership of the six member states cameroon, central african republic, chad, congo, equatorial guinea and gabon. E banking services features, challenges and benefits 51 2. The banking sector in ghana has seen a tremendous development in information and communication ronic funds transfer at, ing rendered to its customers, but has also reduced the operational cost of the company under ntenance should be carried out to ensure a smooth running of e banking, atm, telephone banking, barclays bank, customers. Central africa african financial markets initiative.
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