Ownership Structure, Bank Stability and the Financial Performance of Commercial Banks in South Sudan (Published)
Since independence in 2011 the Republic of South Sudan has witnessed growth in the financial systems and the overall economy. This has led to growth in the number of the financial institutions in the country. Central to this growth pattern are commercial banks both domestic and foreign-owned. However despite their presence within the country for the last half-decade there has been scant literature examining their stability in the face of the numerous internal factors and economic shocks. Hence the current research sought to determine the effect of ownership structure, bank stability and the financial performance of commercial banks in South Sudan. The study was primarily grounded on the CAMEL model and theory of the firm. The study further adopted the positivism philosophy which guided the research. The research employed a descriptive research design. The population for the study was all the 29 commercial banks in south Sudan from which the research targeted one senior manager. The research relied on a mixed methodology which encompassed both quantitative and qualitative data. Secondary data was collected for the period 2012-2017 from audited annual financial reports of individual banks and from the Central Bank of South Sudan reports while primary data was collected by use of a semi-structured questionnaire. The collected data was edited, sorted and coded into SPSS 23 for subsequent data analysis using SPSS 23 statistical analysis tool. The research utilized both descriptive and inferential statistical methods in the analysis. The statistical tests to be utilized in the study included t-tests, f-test, regression models and ANOVA models. The findings of the research were presented using frequencies, percentages, means, standard deviation, correlation coefficients, charts, tables and other statistical measures. The results of the study indicated there was a statistically significant moderating effect of ownership structure on the financial performance of commercial banks in South Sudan. The study recommends that the government should adopt better measures to safeguard public owned commercial banks to improve their efficiency and performance.
Keywords: Financial Performance, Foreign ownership, joint venture, private-local ownership, public ownership