Kwame Yakubu Mahamah
Department Of Business & Economics | Presbyterian University College, Ghana
Banks are economic instruments used to boost productivity, economic growth and poverty alleviation. The efficient running of financial sectors is a prerequisite for economic transformation, growth and development. The survival and growth of banks are critical for the sound provision of financial support to the economic players. The current study sought to examine the relationship between corporate governance practices and financial performance of banks in Ghana, examine the mediating roles of credit risk management between corporate governance practices and financial performance of banks in Ghana and examine the challenges facing banks in the implementation of corporate governance by banks in Ghana. The research approach for the study is quantitative. The application of this method provided a numerical assessment of the study. The study used both primary and secondary data collected using Likert scale questionnaires. The data were statistically analysed with the SPSS. The results show that there is a significant mediation role played by credit risk management in the relationship between corporate governance practices and the financial performance of banks. The study pointed out that corporate governance practices and credit risk management have impacts on the financial performance of banks. Analyzing the individual indicators under corporate governance practices and credit risk management it was found that all the identified corporate governance practices and credit risk management indicators are significant in managing financial performance banks. The study recommended that additional studies must be conducted to assess the effects of corporate governance on other aspects of performance including marketing performance, operational performance, and administrative performance among banks in Ghana.
Keywords: Financial Performance, Economic Instruments, Economic Growth and Poverty Alleviation