Title: The recapitalisation of universal banks and SME development in Ghana

Authors: David Kwabla Adegbedzi; Pravin Narayan Mahamuni

Addresses: Bharati Vidyapeeth (Deemed to be University), Centre for Distance and Online Education, Pune, India ' Pandit Sunderlal Sharma Central Institute of Vocational Education (PSSCIVE), Bhopal, India

Abstract: The persistent collapse of SMEs in Ghana is largely attributed to the dire financial challenges the sector faces. This study seeks to investigate whether bank recapitalisation affects the development of SMEs. Descriptive and inferential designs with a quantitative approach, anchored on a positivist paradigm, realists ontology and objectivist epistemology, were used. Frequency counts and paired sample t-tests were used to analyse the data. Findings showed that capital adequacy has a significant positive effect on SME development. Also, the 2018 recapitalisation of universal banks had a significant positive effect on SME development. It was recommended that authorities should fashion out policies to ensure adequate resourcing of the banks to enhance public confidence in the banking industry and to improve the sector's support for the SMEs in a bid to augment the government's efforts in supporting SMEs in Ghana.

Keywords: bank recapitalisation; SME development; pro-concentration theory; pro-de-concentration theory; Ghana.

DOI: 10.1504/AJAAF.2024.140569

African Journal of Accounting, Auditing and Finance, 2024 Vol.8 No.4, pp.425 - 442

Accepted: 29 May 2024
Published online: 23 Aug 2024 *

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