The financial performance of banks across the globe is of utmost importance to its shareholders, managers, investors, regulators, and the general public. This study therefore investigates the impact of credit risk with focus on non-performing loans on the financial performance of commercial banks in Ghana. Return on asset and economic value-added are used as measures of financial performance. Internal bank factors such as the age and size of the bank are also considered. Macroeconomic factors such as gross domestic product, inflation, and monetary policy rate are included in the analysis. Panel data spanning the period 2013 to 2018 on 15 commercial banks in Ghana is used for the analysis. The results from the random effect estimation technique show that non-performing loans have a negative impact on both measures of financial performance. Also, monetary policy rate has a negative impact on both measures of financial performance, albeit insignificant for economic value-added measure. It is further revealed that the size of bank, age of bank, and gross domestic product have a significant positive effect on both measures of financial performance although significant for return on asset. Based on the negative relationship between non-performing loans and financial performance, it is suggested that commercial banks should adopt stringent credit risk management policies, which should also be updated regularly to guide actions and processes to granting of loans and monitoring credit risk. Furthermore, it is suggested that the value of depreciable assets pledged as collaterals to the banks should be reviewed frequently (probably annually) to reflect a decline in their value. The novelty of the present study pertains to the use of economic value-added as a financial performance measure, which previous studies have virtually ignored in the analysis of credit risk and financial performance nexus.

Loan defaults continue to be a major challenge that confronts financial institutions in developing countries and this impedes their potential role in sustainable development. Given the enormity of loan defaults, policymakers have devoted much attention to the phenomenon by implementing strategies and policies aimed at improving loan repayment to avert the situation. To complement the effort of policymakers, several empirical studies have also been conducted regarding loan repayment determinants; but what is worrying is that none of these studies emphasises the role of financial literacy, especially in the Ghanaian context. This study therefore examines the potential effect of financial literacy on loan repayment. We rely on primary data and employ the binary probit regression for the analysis. The results reveal a positive and significant relationship between financial literacy and loan repayment. This means that enhancing financial literacy improves loan repayment significantly which will in turn ensure sustainability of the financial institutions. The level of education of borrowers is also revealed to play a key role in loan repayment. Given the findings, the study sheds new lights on how loan repayment can be improved to ensure a vibrant banking sector.

Seaports and their efficiency remain essential for the success of international trade globally. Notwithstanding this outcome, there is no empirical evidence on how seaport efficiency affect trade performance in Africa. This paper presents an empirical evidence of the effects of seaport efficiency on trade performance in Africa. To do so, we use data on 33 African countries for the period 2006 to 2018 and employ the gravity model for the empirical analysis. The results show that seaport efficiency enhances trade performance in Africa; the greater the level of seaport efficiency, the larger the extent of trade performance. Based on this finding, it is recommended that policy reforms that improve the efficiency of seaports in Africa should be targeted by policymakers.

This study investigates the determinants of saving among individuals in the informal sector of Ghana with a focus on those engaged in commercial driving activities. The paper relies on primary data and employs descriptive analysis and the binary probit model as the estimation technique. The results reveal that commercial drivers who own the vehicle themselves, have a secondary occupation and have financial institutions close to their stations are more likely to save. In addition, the study reveals a negative relationship between age, education, financial literacy and saving. Based on these findings, relevant policy suggestions have been provided.