ScholarOne - CHANGE MANAGEMENT MECHANISM AND ITS EFFECT ON THE PERFORMANCE OF BANKS

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.