Prudential Regulations And Financial Performance Of Commercial Banks In Sierra Leone

Abdullah Bah , Dr. Richard E.O Pearce , Ambalieu Barrie

Prudential, Regulations, Financial Performance, Commercial Banks

The study sought to assess the impact of prudential regulations on financial performance of commercial banks in Sierra Leone. Specifically, the research investigated the effect of liquidity regulation, credit risk regulation, and capital adequacy regulation on commercial banks’ financial performance. An explanatory research design was used with all 14 licensed commercial banks in Sierra Leone targeted for the study population. Secondary data was obtained from audited commercial banks’ financial statements and from the Central Bank of Sierra Leone for 20 years between 2002 and 2022. Panel data was utilized and was then analysed using panel regression and descriptive analysis. The study found liquidity regulation have a positive and insignificant effect on bank`s performance in Sierra Leone. In addition, The study also concludes that Non-performing loans have a negative and insignificant effect on bank`s performance in Sierra Leone. Finally, capital adequacy regulation was also discovered to have a positive and significant effect on bank`s performance in Sierra Leone.The study recommends that policy makers through the central bank of Sierra Leone should review and improve on the liquidity regulation of commercial banks in Sierra Leone. This will in turn facilitate meeting of customers’ withdrawal demands and short term obligations while improving the commercial banks’ financial performance. In addition, managers in commercial banks should ensure that total loans to total deposits ratio remains low as a way of ensuring that their institutions are able to meet monthly obligations.

Published Paper   E-Certificate

"Prudential Regulations And Financial Performance Of Commercial Banks In Sierra Leone ", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.9, Issue 1, page no.433 - 446, January-2024, Available :https://ijsdr.org/papers/IJSDR2401063.pdf

Volume 9 Issue 1, January-2024

Pages : 433 - 446

Paper Reg. ID: IJSDR_209760

Published Paper Id: IJSDR2401063

Downloads: 000347363

Research Area: Commerce

Country: Freetown, Western Area , Sierra Leone

Published Paper PDF: https://ijsdr.org/papers/IJSDR2401063

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2401063

DOI: https://doi.org/10.5281/zenodo.10555192

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition