The impact of custom-made internal risk control systems on bank performance in Ghana

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

The impact of custom-made internal risk control systems on bank performance in Ghana

Popis výsledku v původním jazyce

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 &apos;strongly agree&apos; and &apos;agree&apos; were scored (1), whereas &apos;neither agree nor dis-agree&apos;, &apos;disagree&apos; and &apos;strongly disagree&apos; 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&apos;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.

Název v anglickém jazyce

The impact of custom-made internal risk control systems on bank performance in Ghana

Popis výsledku anglicky

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 &apos;strongly agree&apos; and &apos;agree&apos; were scored (1), whereas &apos;neither agree nor dis-agree&apos;, &apos;disagree&apos; and &apos;strongly disagree&apos; 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&apos;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.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Forum Scientiae Oeconomia

ISSN

2300-5947

e-ISSN

2353-4435

Svazek periodika

10

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

24

Strana od-do

151-174

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85145381880