ScholarOne - CHANGE MANAGEMENT MECHANISM AND ITS EFFECT ON THE
PERFORMANCE OF BANKS
Abstract
The assessed how banks effectively managed the new capital requirement
implementation in 2017-2018 and the effect of the change management
mechanism on the performance of the banks. The study administered a
structured questionnaire to 302 Branch Managers of 23 banks and
interview 13 General Managers of some of the banks. The study used mean
and standard deviation to analyze the effectiveness of change management
practices during the new capital requirements. Structural Equation Model
(SEM) was used to estimate the impact of change management mechanisms on
the performance of the banks. The study found that the listed banks
effectively applied the change management mechanisms during the new
capital requirement implementation. Change management mechanism as a
whole has a statistically significant positive impact on the performance
of the banks. MAD Statement This article aims to Make a Difference (MAD)
by positioning the notion of change management mechanisms at the core of
management of regulatory changes in banks in Ghana. This is done by
assessing how banks managed the new capital requirement introduced by
Bank of Ghana in 2018 and how the change management affect operational
and financial performance of the banks. The study may help inform
management of banking sector about which change management mechanism
significantly contribute to improving the financial and operational
performance of banks to effectively inform management of regulatory
changes in the future.