The Effect of Bank Specific Factors on Loan Performance of HFC Bank in Ghana

  •  Grace Ofori-Abebrese    
  •  Robert Becker Pickson    
  •  Eric Opare    


The default rate of loan in the country has been on the increase and worrying to all in recent times. This study assessed the effect of bank specific factors on the loan performance in HFC Bank in Ghana. The sample period used for the study was based on a quarterly data from 2008 to 2015. The study employed the ARDL bounds test of co-integration as an estimation technique to show the evidence of long run relationship among the variables. The study found bank’s loan interest rate, loan to asset ratio and bank’s loan loss provision over reserve as bank specific factors that influenced loan performance. These therefore showed that bank specific factors do have significant impact on loan performance. Hence, there is the need for bank management and regulators to undertake policies that can ensure efficiency in banks’ operations.

This work is licensed under a Creative Commons Attribution 4.0 License.