Impact of recapitalisation and dividend payout policies on financial sustainability of rural and community banks in Ghana

Future Business Journal

Table 1 Drivers of financial sustainability

Factor	Construction	Vector	References
X₁	Equity/total asset	Value	Gambetta et al. [47]
X₂	Tier 1 capital adequacy	Value	Paule-Vianez et al. [68]
X₃	Loan loss provision /gross loans	Value	Gemar et al. [51], Grier [54]
X₄	Non-performing loans/gross loans	Value	Curry et al. [39]
X₅	Cost/income ratio	Value	Barker and Holdsworth [17]
X₆	Total asset growth %	Value	Grier [54]
X₇	Operating income/asset	Continuity	Grier [54]
X₈	Net income/equity	Continuity	Vilén and Markus [80]
X₉	Net income/total asset	Continuity	Curry et al. [39]
X₁₀	Net loan/(deposit + short term funding)	Continuity	Bell 19
X₁₁	Liquid asset/(deposit + short term funding)	Continuity	Vilén and Markus [80]
X₁₂	Interbank Asset/liabilities	Continuity	Vilén and Markus [80]