Abstract:
This research delved into the impact of the Covid-19 pandemic on the Non Performing Loan (NPL) rates of commercial banks in Ghana. Employing Covid-19
annual recorded rates as a moderating variable, the study scrutinized the interaction
with key macroeconomic indicators: Gross Domestic Product Growth rates, Exchange
rates, Unemployment rates, Interest rates and Inflation rates. The investigation
focused on NPL rates compiled from nine commercial banks listed on the Ghana
Stock Exchange with a minimum operational history of seven years in Ghana,
spanning from 2010 to 2022. Employing statistical tools to ensure the dataset adheres
to assumptions, including normality, multicollinearity, and autocorrelation tests, the
study utilized Ordinary Least Squares (OLS) Regression. Employing a quantitative
research approach and a Quasi-experimental research design, the analysis revealed an
inverse moderating effect of Covid-19 on the relationship between GDP growth rates
and NPL rates, deviating from prior studies. Notably, the study highlighted a
heightened impact on non-performing loans during the presence of Covid-19,
indicating a potential surge in NPL rates. The moderation of Covid-19 on exchange
rates suggested a substantial influence on currency values, significantly affecting the
ability of entities to meet loan obligations. The study also identified a positive
relationship between inflation rates and non-performing loan ratios. This signified
that fluctuations in inflation may directly influence the stability and performance of
loans within the financial system, a revelation of considerable consequence.
Description:
A Dissertation in the Department of Applied Finance and Policy Management,
School of Business, Submitted to the School of
Graduate Studies, in partial fulfilment
of the requirements for the award of the degree of
Master of Business Administration
(Finance)
at the University of Education, Winneba
