Year: 2025
Type: article
Abstract: This study examines the heterogeneous effects of recapitalization and the origin of banks on agricultural finance in Ghana, using panel data from 2015–2018 (pre-recapitalization) and 2019–2022 (post-recapitalization). Fixed effects regression with robust standard errors was employed, incorporating macroeconomic indicators (interest rate, inflation) and bank-specific variables (capital adequacy ratio, non-performing loans). Results show that recapitalization improved agricultural financing. Regional banks increased lending compared to foreign banks, while indigenous banks reduced lending. Macroeconomic and bank-specific factors also influenced agricultural finance differently. Policies should incentivize domestic banks to support the agricultural sector in enhancing food security and reducing dependence on foreign aid.
Source: Modern Finance
DOI: 10.61351/mf.v3i2.231
Institutions: University for Development Studies, University of Lagos
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409647771