Investigating The Impact Of Capital Adequacy Ratio And Corruption On Bank Risk-Taking In Ghana


Bunyaminu A., Bashiru S., Amadu I. M., Yakubu I. N., Iddrisu A. J.

Academy of Accounting and Financial Studies Journal, cilt.25, sa.4, ss.1-7, 2021 (Scopus)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 25 Sayı: 4
  • Basım Tarihi: 2021
  • Dergi Adı: Academy of Accounting and Financial Studies Journal
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.1-7
  • Anahtar Kelimeler: Bank-Risk Taking, Capital Adequacy, Corruption, Ghana, System GMM
  • Ankara Yıldırım Beyazıt Üniversitesi Adresli: Evet

Özet

© 2021,Academy of Accounting and Financial Studies Journal.This paper examines the impact of capital adequacy and corruption on bank risk-taking behaviour in Ghana over the period 2008-2017. Using the system generalized method of moments (GMM) technique; we establish that increasing bank capital has a significant positive effect on banks’ risk-taking. This finding supports the “regulatory hypothesis”. In addition, the results show that corruption induces bank risk-taking, thus favoring the “sand the wheels” view in the corruption-development nexus. Based on the findings, we discuss relevant policy implications for regulators and bank managers.