ASSESSING THE IMPACT OF COVID 19 ON THE PERFORMANCE OF RURAL BANKS WITHIN THE GREATER KUMASI AND ACCRA REGIONS / ÉVALUATION DE L'IMPACT DU COVID 19 SUR LA PERFORMANCE DES BANQUES RURALES DANS LES RÉGIONS DU GRAND KUMASI ET ACCRA
Abstract
The COVID-19 pandemic had a devastating impact on the economy of Ghana, as restrictive measures imposed by the Ghanaian government to stem the spread of the virus disrupted economic activities. The research, therefore, aimed at investigating the impact the pandemic had on the performance of rural banks, using Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM) as performance indicators. The study specifically had the objective of assessing the impact of the pandemic on rural banks located in areas which faced the three-week lockdown imposed by the government. Hence, three rural banks from Accra and Greater Kumasi areas: La Community Rural Bank, Atwima Mponua Rural Bank, and Okomfo Anokye Rural Bank, were selected through convenience sampling. The study aimed to determine the impact of the pandemic by comparing the pre-pandemic performance of the rural banks, which was represented by their 2018 and 2019 performances, and their during-pandemic performance, which was represented by their 2020 performance since the pandemic hit the country in the year 2020. The financial statements of the rural banks were analysed using the t-test. Findings demonstrated that there was no significant difference in the ROA, ROE, and NIM of rural banks between the pre-pandemic and post-pandemic periods, indicating that their performance was not adversely impacted by the Covid-19 pandemic. This was interpreted to mean that rural banks in the country were resilient, as they bounced from their initial poor performance earlier on in the year 2020 as the majority of the restrictions were lifted.
JEL: G21; E44; I18; O55; G01
La pandémie de Covid-19 a eu un impact dévastateur sur l’économie du Ghana, car les mesures restrictives imposées par le gouvernement ghanéen pour endiguer la propagation du virus ont perturbé les activités économiques. La recherche visait donc à étudier l’impact de la pandémie sur la performance des banques rurales, en utilisant le rendement des actifs (ROA), le rendement des capitaux propres (ROE) et la marge nette d’intérêt (NIM) comme indicateurs de performance. L’étude avait spécifiquement pour objectif d’évaluer l’impact de la pandémie sur les banques rurales situées dans les zones confrontées au confinement de trois semaines imposé par le gouvernement. Ainsi, trois banques rurales des régions d'Accra et du Grand Kumasi : La Community Rural Bank, Atwima Mponua Rural Bank et Okomfo Anokye Rural Bank ont été sélectionnées par échantillonnage de commodité. L'étude visait à déterminer l'impact de la pandémie en comparant la performance pré-pandémique des banques rurales, représentée par leurs performances de 2018 et 2019, et leur performance pendant la pandémie, représentée par leur performance de 2020, depuis la pandémie. a frappé le pays en 2020. Les états financiers des banques rurales ont été analysés à l’aide du test t. Les résultats ont démontré qu’il n’y avait pas de différence significative dans le ROA, le ROE et le NIM des banques rurales entre les périodes pré-pandémique et post-pandémique, ce qui indique que leur performance n’a pas été affectée par la pandémie de Covid-19. Cela a été interprété comme signifiant que les banques rurales du pays ont fait preuve de résilience, puisqu’elles ont rebondi après leurs mauvaises performances initiales au début de l’année 2020, lorsque la majorité des restrictions ont été levées.
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DOI: http://dx.doi.org/10.46827/ejefr.v8i4.1744
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