Abstract:
ABSTRACT
Commercial banks and other financial sectors worldwide have undergone
dramatic downturns due to global financial crises, issues in non-performing
loans, and governance practices volumes in the past ten (10) years, and it has
caught the attention of policymakers. The purpose of the study was to examine
the moderating role of credit information sharing on the relationship between
audit committee effectiveness and bank stability. Data were collected from 14
out of 23 commercial banks in Ghana from 2010 to 2019 due to data
unavailability. The study adopted an explanatory research design. Secondary
data was collected from banks‘ annual reports with excel through Ghana stock
exchange and companies‘ website. The findings indicate that credit
information sharing complements the audit committee‘s effectiveness (audit
committee expertise, audit committee independence, audit committee meeting
frequency, and audit committee size) in promoting the stability of banks in
Ghana. The findings revealed that audit committee independence played a
more significant role in strengthening resilience within Ghana, followed by
expertise, diligence and size, respectively when information sharing patronage
played a moderating character. The findings further showed that audit
committee expertise played a more significant part in improving stability
within the Ghana banking sector, followed by diligence, size, and
independence after the credit information sharing cost played a moderated
role. The researcher recommended that mandatory policies such as the audit
committee effectiveness can improve bank stability by encouraging the credit
information sharing usage. However, the researcher had limited time and
resources, making the researcher run into a database problem.
