Determinants of commercial banks performance in Ghana and Türkiye: An application of CAMELS model

The thesis analyzes the determinants of commercial bank performance in Ghana and Turkiye, employing the CAMELS framework (Capital adequacy, Asset quality, Management efficiency, Earnings quality, Liquidity, and Sensitivity) alongside macroeconomic indicators such as inflation, GDP, and ownership structure. Through a mixed-method approach utilizing data from 2013–2022, the study examines financial reports of 20 commercial banks across the two nations. Key findings demonstrate that asset quality, liquidity, and inflation significantly affect Return on Assets (ROA) in Ghana, while macroeconomic variables have less pronounced effects on Return on Equity (ROE). In Turkiye, financial indicators suggest a generally stable banking environment, yet substantial variability exists in profitability and risk metrics. The study emphasizes the importance of risk management, financial literacy, and tailored policies to enhance the stability and performance of banks. Recommendations include expanding financial literacy programs, addressing systemic risks, and fostering regulatory collaboration to ensure financial inclusivity and sustainable growth. This research contributes to the global understanding of bank performance, offering practical and theoretical insights for policymakers, financial institutions, and academics. It underscores the CAMELS model's applicability in assessing and comparing banking systems across diverse economic contexts.