Abstract:

The study evaluated the business and the financial performance of state-owned financial institutions in Ghana for the four-year period ending December 31, 2015. In conducting the study both officials and customer of the bank were interviewed using the questionnaire technique as the research instrument. Simple random sampling techniques enabled the researcher to select the customer respondents while purposive sampling technique helped in directly approaching officials of the bank whose job description logically enhanced their readiness to co-operate fully with the study.

The study uncovered the fact that state owned banks in Ghana have assembled fairly qualified personnel who assist in achieving organizational goals. It also came to light that the banks’ operating costs are increasing as a result of hike in staff cost emanating from industry competition over experienced professionals as well as unpaid loans on government businesses. Customer c0mplaints centered on unreliable service delivery systems especially ATMs. It was recommended that government and political authorities should desist from interfering in the operations of state- owned banks so as to enable them retrieve loans granted to minimize the large the bad debts. The banks were further advised to maintain planned maintenance schedule for the ATM equipment, thereby enhancing service delivery. Given the relatively more affordable service charges offered by these banks, their visibility in terms of numerous branches, it stands to reason that if government grants the board members the free hand to operate, they will continue to serve Ghanaians better than their foreign counterparts.

Keywords: state owned banks, financial institution, business performance, financial ratios.

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