Paper Title
The Impact of Bank Funding Strategies on Financial Performance of Commercial Banks in Ghana

Abstract
The study investigated the effect of bank funding strategies on bank performance in Ghana. Panel data methodology was used to estimate the relationship between bank funding metrics (cost-income ratio, Equity/Assets, Demand deposit divided by total deposit ratio, Non-deposit divided by total deposits, Equity Funding, Inflation rate, Real GDP) and performance (Return on Asset, Return on Equity and Net Interest Margin). The study covered 22 banks over sixteen (16) years period (2000 to 2015). The study finding revealed that bank size, Equity/TA, Demand deposit/Deposits, Non-deposit/Deposit, Deposits/TA, and Inflation positively affect banks’ performance (ROA). However, cost to income ratio has negative relationship with bank performance (ROA) as well as Demand deposit/TA, Non-deposit/TA, GDP Growth, and Per capita GDP negatively affect bank performance. Further, the study finding revealed that bank size, Cost-Income, Equity/TA, Demand deposit/Deposits, Non-deposit/Deposit, Deposits/TA, and Inflation positively affect banks’ performance (ROE). However, cost to Demand deposit/TA has negative relationship with bank performance (ROE) as well as Non-Demand deposit/TA, GDP Growth, and Per capita GDP negatively affect bank performance (ROE). The study finding revealed that bank size, Equity/TA, Non-deposit/Deposit, Deposits/TA, Inflation, and GDP Growth positively affects banks’ performance (ROA). However, cost to income ratio has negative relationship with bank performance (ROA) as well as Demand deposit/Deposits, Deposit/TA, Non-deposit/TA, and Per capita GDP negatively affect bank performance. The study therefore recommends that commercial banks in Ghana should device appropriate funding strategy preferably more of deposit funding which is relatively cheaper and more profitable. Deposits could come more as a result of commercial banks making deposits attractive to customers like making promotions on them. Keywords - Bank funding strategies, Financial performance, Commercial banks, Ghana