The impact of custom-made internal risk control systems on bank performance in Ghana
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43922805" target="_blank" >RIV/62156489:43110/22:43922805 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.23762/FSO_VOL10_NO4_8" target="_blank" >https://doi.org/10.23762/FSO_VOL10_NO4_8</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.23762/FSO_VOL10_NO4_8" target="_blank" >10.23762/FSO_VOL10_NO4_8</a>
Alternative languages
Result language
angličtina
Original language name
The impact of custom-made internal risk control systems on bank performance in Ghana
Original language description
Internal risk control systems are critical to the banking industry, since most of their business activities are prone to several risks. However, the internal risk control systems of most banks have not been customised to suit their business activities to mitigate the risks associated with their business operations. Given this, this study used the five COSO internal control components to assess the impact of custom-made internal risk control systems on bank performance, which was intended to provide comprehensive knowledge. The 10-year study from 2012-2021 is made up of 20 commercial banks, 10 savings and loans, 10 microfinance companies and 10 rural and community banks. Data was collected by means of a close-ended questionnaire designed on a five-point Likert scale, where 'strongly agree' and 'agree' were scored (1), whereas 'neither agree nor dis-agree', 'disagree' and 'strongly disagree' were scored (0). The secondary data was obtained from the audited an-nual reports of the banks using the Orbis database. The study used return on assets (ROA) as the performance indicator, and employed a custom-made control envi-ronment, risk assessment, control activities, monitoring, net interest margin, and custom-made information and communication as the independent variables. The study used descriptive statistics, correlation matrix, tolerance value, variation inf lation factor, Cronbach's alpha, OLS, FE and system GMM in its analysis. The study found that the custom-made control environment, risk assess-ment, control activities, monitoring, net interest margin, and custom-made information and communication positively impact the return on assets, i.e. profitability. The study provided knowledge on the impact of cus-tom-made internal risk control systems on bank perfor-mance. The study suggests that banks should identify and capitalise on the best mix of internal controls that suit their business environments and objectives. The imminent research can broaden the scope of the study by including (ROE), (NIM), or (CTI) as performance indicators in other organisations and economies.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Forum Scientiae Oeconomia
ISSN
2300-5947
e-ISSN
2353-4435
Volume of the periodical
10
Issue of the periodical within the volume
4
Country of publishing house
PL - POLAND
Number of pages
24
Pages from-to
151-174
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85145381880