Banking and Wealth Creation for Stakeholders in Cameroon: An Exploratory Study
Keywords:
Banking, Financial Institution, Investment Management, Private Banking, Wealth Management
Abstract
This paper focuses on surveying the association between banking and wealth creation for customers, bankers, and owners of financial institutions in Cameroon. Questionnaires were administered using a random sampling technique, and this formed the principal instrument for data collection for the study. Eighty-five (85) questionnaires were sent out but only fifty-four (54) were returned and used for the analysis. Chi-square and Pearson Correlation were preferred and used to analyse the data for expediency. Results show no relationship between banking and wealth creation for customers in Cameroon. There is a certain claim that bankers and owners of financial institutions are wealthier than customers who provide the much-needed deposits that are used for investments. These results mean that customers bank not because they want to create wealth but because of the transaction services, safety, and security that financial institutions offer them.
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References
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32. Kihimbo, B. W. (2021). Collateral requirements for financing of small and medium enterprises (SMEs) in Kakamega municipality in Kenya. International Journal of Current Research. 4(6). 21-26.
33. Madhani, P. M. (2007). Wealth management: emerging opportunities. MBA review. The Icfai University Press. SSRN:1507649 available at: http://ssrn.com/abstract=1507649.
34. Mankiw, G. N. (2017). Principles of economics. 8th edition. Cengage Learning.
35. Marshall, A. (1923). Money, credit and commerce. London: Macmillan & Company.
36. Mbu, S. A. & Nso, M. A. (2021). Investigating customers’ wealth creation and satisfaction with financial institutions. Journal of Business and Management. IOSR Journal of Business and Management, IOSR-JBM.23(08). 47-57. DOI: 10.9790/487X-2308054757.
37. Mishkin, F. S. (2012). The economics of money, banking and financial markets. Pearson.
38. Mishkin, F. S. & Serletis, A. (2011). The economics of money, banking and financial markets. 4th Canadian edition. Toronto: Pearson Canada. ISBN: 978-321-58471-7.
39. Murali, S. & Subbakrishna, K.R. (2018). Personal financial planning (wealth management). http://www.himpub.com/documents/Chapter2753.pdf.
40. Mvodo, S., Fogne, M., Ndam, L., & Eyong, J. (2021). Economic analysis of fish traders access to formal finance in Cameroon. Review of Socio-Economic Perspectives. 6(1). 67-78. DOI: https://doi.org/10.19275/RSEP109.
41. Myers, S. C. (1984). Corporate finance and investment decision when firms have information that investors do not have. Journal of Financial Economics. 13(2). 187 – 221.
42. Ngwengeh, B. B., Messomo, E. S., & Mbu, S. A. (2021). The influence of digital financial services on the financial performance of commercial banks in Cameroon. European Scientific Journal, ESJ. 17(15). 448. https://doi.org/10.19044/esj.2021.v17n15p448.
43. Njimanted, G. F., Molem, C. S., & Nkwetta, A. A. (2016). An econometric investigation in to financial intermediation, domestic investment and economic growth in Cameroon. Journal of Finance and Economics. 4(1). 1-9. DOI:10.12691/jfe-4-1-1.
44. Nso, M. A. & Mbu, S. A. (2021). Investigating the differences in opinions on the impact of a health-run on remittances and financial inclusion. Asian Journal of Interdisciplinary Research. 4(3). 54-61. https://doi.org/10.34256/ajir2136.
45. Nso, M. A. (2005). Money creation, credit and recovery: as duties of financial institutions. PostNewsLine. Available at: https://www.postnewsline.com/2005/10/money_creation_.html.
46. Omankhanlen, A. E. (2012). The role of banks in capital formation and economic growth: the case of Nigeria. Economy Transdisciplinary Cognition. Bacau. 15(1). 103-112. https://www.ugb.ro/etc/etc2012no1/14fa.pdf.
47. Osano, H. M. & Languitone, H. (2016). Factors influencing access to finance by SMEs in Mozambique: case of SMEs in Maputo central business district. Journal of Innovation and Entrepreneurship. Springer, Herdelberg, 5(13). 1-16. https://dx.doi.org/10.1186/s13731-016-0041-0.
48. Osei-Assibey, E. (2011). Microfinance in Ghana: a comparative study of performance of the formal versus informal rural financial institution. Forum of International Development Studies. 40. 151-175.
49. Padilla, A. J. & Pagano, M. (1997). Endogenous communication among lenders and entrepreneurial incentives. The Review of Financial Studies. 10(1). 205-236.
50. Shabbir, A. Md., Rabbani, M. R., Tausif, M. R., & Abey, J. (2021). Banks’ performance and economic growth in India: A panel cointegration analysis. Economies. 9. 38 https://doi.org/10.3390/economies9010038.
51. Singh, Y. K. (2006). Fundamentals of research methodology and statistics. New Delhi: New Age International (P) Limited Publishers.
52. Sinkey, J. (1992). Commercial bank financial management in the financial services industry. 6th Edition. Macmillan Perspective Publishing Company.
53. Stiglitz, J. E. & Weiss A. (1981). Credit rationing in markets with imperfect information. American Economic Review. Vol. 71. 393-410.
54. Sue, G. (2008). Business research methods. Sue Greener & Ventus Publishing ApS. ISBN: 978-87-7681-421-2.
55. Tahir, S. H., Shehzadi, I., Ali, I., & Ullah, M. R. (2015). Impact of bank lending on economics growth in Pakistan: An empirical study of lending to private sector. American Journal of Industrial and Business Management. 5(8). 565 -576. Doi:10.4236/ajibm.2015.58056.
56. Twerefou, D.K., Osei-Assibey, E., & Agyire-Tettey F. (2011). Land tenure security, investments and the environment in Ghana. Journal of Development and Agricultural Economics. 3. 261-273.
57. Zavadska, D. (2018). Determining the role of banks in the financing of innovative development processes of the economy. Baltic Journal of Economic Studies. 4(3). DOI: https://doi.org/10.30525/2256-0742/2018-4-3-68-73.
2. Ahmad, J., Ekayanti, A., Nonci, N., & Ramadhan, M. R. (2020). Government agility and management information systems: study of regional government financial reports. The Journal of Asian Finance, Economics and Business. 7(10). 315-322. https://doi.org/10.13106/jafeb.2020.vol7.n10.315.
3. Al Balushi, Y. S. (2019). Determinants of the decision to adopt Islamic finance: evidence from Oman. ISRA International Journal of Islamic Finance. 11(1). 6-26. https://doi.org/10.1108/IJIF-02-2018-0020.
4. Alam, Md. S., Rabbani, M. R., Tausif, M. R., & Abey, J. (2021). Banks performance and economic growth in India: a panel cointegration analysis. Economies. 9(38). https://doi.org/10.3390/economies9010038.
5. Aluoch, M. O., Kaijage, E. S., Iraya, C.M., & Ogutu, M. (2019). Corporate governance, financial characteristics, macroeconomic factors and performance of commercial and service firms listed at the Nairobi securities exchange. International Journal of Business and Social Science. 10(3). doi:10.30845/ijbss. v10n3p2.
6. Armenta, M. W. (2007). The financial sector and economic development: banking on the role of human capital. Journal of Public and International Affairs. 18. 188-203. https://web.a.ebscohost.com/abstract?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=1070521X&AN=32183392&h=Tz5RwdJ1NlIyNDRwF3aGrat%2fJNoBF9T2efRpJl9YYWaxw6WW6m39mj4vtKrFlsQ8EAkgGqCiEwbYTQL4lNNocg%3d%3d&crl=c&resultNs=AdminWebAuth&resultLocal=ErrCrlNotAuth&crlhashurl=login.aspx%3fdirect%3dtrue%26profile%3dehost%26scope%3dsite%26authtype%3dcrawler%26jrnl%3d1070521X%26AN%3d3218339.
7. Aurangzeb (2012). Contribution of banking sector in economic growth: a case of Pakistan. Economics and Finance Review. 2. 45-54.
8. Beck, T., Maksimovic, V., & Demirguc-Kunt, A. (2003). Financial and legal institutions and firm size. World Bank Policy Research Working Paper No. 2997. Available at SSRN: https://ssrn.com/abstract=636359.
9. Bentler, P. (1990). Comparative fit indices in structural models permalink. Psychological Bulletin. 107(2). 238-246.
10. Berger, A. N. (1998). The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance. 22(3). 613-673.
11. Berger, A. N. (2011). Bank size, lending technologies and small business finance. Banking and Finance. 25(3). 724-735.
12. Binks, M. & Ennew, T. (1997). Small business and relationship banking: the impact of participative behavior and entrepreneurship. London: Macmillan.
13. Blattberg, R. C., Kim, B. D., & Neslin, S. A. (2008). Database marketing: analyzing and managing customers. New York: Springer Science.
14. Brealey, R. A., Myers, S. C., & Allen (2008). Principles of corporate finance. Ninth edition. McGraw Hill.
15. Broby, D. (2010). A guide to fund management. Risk Books.
16. Burns, R. P. & Burns R. (2008). Business research methods & statistics using SPSS. SAGE Publications.
17. Byrne, B. M. (2013). Structural equation modelling with AMOS: basic concepts, applications, and programming, Second Edition. Taylor & Francis. Retrieved from: https://books.google.co.id/books?id=1dHbAAAAQBAJ.
18. Casu, B., Giradone, C., & Molyneux, P. (2006). Introduction to banking. New Jersey: Prentice Hall.
19. Chowdhury, A. H. (1993). Rural institutional finance in Bangladesh and Nepal: review and agenda for reforms. Asian Development Bank. 1-61.
20. Creswell, J. W. (2017). Research design: qualitative, quantitative, and mixed methods approaches. 4th ed. Sage Publications.
21. Douglas, J. L. (2008). The role of a banking system in nation-building. Maine Law Review. 60(2). Available at: https://digitalcommons.mainelaw.maine.edu/mlr/vol60/iss2/14.
22. Fadeyi, O. A. (2018). Smallholder agricultural finance in Nigeria: literature review on the research gap. International Journal of New Technology and Research. 4(8). 26-33. DOI: 4.10.31871/IJNTR.4.8.9.
23. Field, A. (2013). Discovering statistics using IBM SPSS statistics. 4th ed. Los Angeles, CA: Sage Publications.
24. Fonkam, M. N. (2021). Management skills and performance of state-owned enterprises in Cameroon. Journal of Business and Economic Development. 6(2). 115-124. ISSN: 2637-3866 (print): ISSN: 2637-3874 (online). Doi: 10.11648/j.jbed.20210602.17.
25. Gaizo, A., Risaliti, G., & Rotili, M. (2018). The new rules on bank remuneration policies reception by the three major Italian banking groups. European Scientific Journal, ESJ. 14(7). 386. https://doi.org/10.19044/esj.2018.v14n7p386.
26. George, D. and Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference 11.0 update. 4th ed. Boston: Allyn & Bacon.
27. Greenbaum, S. I. & Thakor, A. V. (2019). Contemporary financial intermediation, Second edition. Academic Press.
28. Headey, B. & Wooden, M. (2004). The effects of wealth and income on subjective well-being and ill-being. Forschungsinstitut zur Zukunft der Arbeit, Institute for the Study of Labor, IZA. Discussion Paper No. 1032 available at: http://ftp.iza.org/dp1032.pdf.
29. Heffernan, S. (2005). Modern banking. West Sussex: John Wiley & Sons Ltd.
30. Johnson, O. E. G. (2020). Financial sector development in African countries, major policy making issues. Gewerbestrasse: Palgrave Macmillan. 11,6330 Cham, Switzerland AG. https://doi.org/10.1007/978-3-030-32938-9.
31. Kathini, K. A. & Ochere, O. G. (2020). Effect of credit risk on shareholders’ wealth of listed commercial banks in Kenya. European Scientific Journal, ESJ. 16(22). 205. https://doi.org/10.19044/esj.2020.v16n22p205.
32. Kihimbo, B. W. (2021). Collateral requirements for financing of small and medium enterprises (SMEs) in Kakamega municipality in Kenya. International Journal of Current Research. 4(6). 21-26.
33. Madhani, P. M. (2007). Wealth management: emerging opportunities. MBA review. The Icfai University Press. SSRN:1507649 available at: http://ssrn.com/abstract=1507649.
34. Mankiw, G. N. (2017). Principles of economics. 8th edition. Cengage Learning.
35. Marshall, A. (1923). Money, credit and commerce. London: Macmillan & Company.
36. Mbu, S. A. & Nso, M. A. (2021). Investigating customers’ wealth creation and satisfaction with financial institutions. Journal of Business and Management. IOSR Journal of Business and Management, IOSR-JBM.23(08). 47-57. DOI: 10.9790/487X-2308054757.
37. Mishkin, F. S. (2012). The economics of money, banking and financial markets. Pearson.
38. Mishkin, F. S. & Serletis, A. (2011). The economics of money, banking and financial markets. 4th Canadian edition. Toronto: Pearson Canada. ISBN: 978-321-58471-7.
39. Murali, S. & Subbakrishna, K.R. (2018). Personal financial planning (wealth management). http://www.himpub.com/documents/Chapter2753.pdf.
40. Mvodo, S., Fogne, M., Ndam, L., & Eyong, J. (2021). Economic analysis of fish traders access to formal finance in Cameroon. Review of Socio-Economic Perspectives. 6(1). 67-78. DOI: https://doi.org/10.19275/RSEP109.
41. Myers, S. C. (1984). Corporate finance and investment decision when firms have information that investors do not have. Journal of Financial Economics. 13(2). 187 – 221.
42. Ngwengeh, B. B., Messomo, E. S., & Mbu, S. A. (2021). The influence of digital financial services on the financial performance of commercial banks in Cameroon. European Scientific Journal, ESJ. 17(15). 448. https://doi.org/10.19044/esj.2021.v17n15p448.
43. Njimanted, G. F., Molem, C. S., & Nkwetta, A. A. (2016). An econometric investigation in to financial intermediation, domestic investment and economic growth in Cameroon. Journal of Finance and Economics. 4(1). 1-9. DOI:10.12691/jfe-4-1-1.
44. Nso, M. A. & Mbu, S. A. (2021). Investigating the differences in opinions on the impact of a health-run on remittances and financial inclusion. Asian Journal of Interdisciplinary Research. 4(3). 54-61. https://doi.org/10.34256/ajir2136.
45. Nso, M. A. (2005). Money creation, credit and recovery: as duties of financial institutions. PostNewsLine. Available at: https://www.postnewsline.com/2005/10/money_creation_.html.
46. Omankhanlen, A. E. (2012). The role of banks in capital formation and economic growth: the case of Nigeria. Economy Transdisciplinary Cognition. Bacau. 15(1). 103-112. https://www.ugb.ro/etc/etc2012no1/14fa.pdf.
47. Osano, H. M. & Languitone, H. (2016). Factors influencing access to finance by SMEs in Mozambique: case of SMEs in Maputo central business district. Journal of Innovation and Entrepreneurship. Springer, Herdelberg, 5(13). 1-16. https://dx.doi.org/10.1186/s13731-016-0041-0.
48. Osei-Assibey, E. (2011). Microfinance in Ghana: a comparative study of performance of the formal versus informal rural financial institution. Forum of International Development Studies. 40. 151-175.
49. Padilla, A. J. & Pagano, M. (1997). Endogenous communication among lenders and entrepreneurial incentives. The Review of Financial Studies. 10(1). 205-236.
50. Shabbir, A. Md., Rabbani, M. R., Tausif, M. R., & Abey, J. (2021). Banks’ performance and economic growth in India: A panel cointegration analysis. Economies. 9. 38 https://doi.org/10.3390/economies9010038.
51. Singh, Y. K. (2006). Fundamentals of research methodology and statistics. New Delhi: New Age International (P) Limited Publishers.
52. Sinkey, J. (1992). Commercial bank financial management in the financial services industry. 6th Edition. Macmillan Perspective Publishing Company.
53. Stiglitz, J. E. & Weiss A. (1981). Credit rationing in markets with imperfect information. American Economic Review. Vol. 71. 393-410.
54. Sue, G. (2008). Business research methods. Sue Greener & Ventus Publishing ApS. ISBN: 978-87-7681-421-2.
55. Tahir, S. H., Shehzadi, I., Ali, I., & Ullah, M. R. (2015). Impact of bank lending on economics growth in Pakistan: An empirical study of lending to private sector. American Journal of Industrial and Business Management. 5(8). 565 -576. Doi:10.4236/ajibm.2015.58056.
56. Twerefou, D.K., Osei-Assibey, E., & Agyire-Tettey F. (2011). Land tenure security, investments and the environment in Ghana. Journal of Development and Agricultural Economics. 3. 261-273.
57. Zavadska, D. (2018). Determining the role of banks in the financing of innovative development processes of the economy. Baltic Journal of Economic Studies. 4(3). DOI: https://doi.org/10.30525/2256-0742/2018-4-3-68-73.
Published
2022-03-31
How to Cite
Agbor Mbu, S., & Maurice , A. N. (2022). Banking and Wealth Creation for Stakeholders in Cameroon: An Exploratory Study. European Scientific Journal, ESJ, 18(9), 38. https://doi.org/10.19044/esj.2022.v18n9p38
Section
ESJ Social Sciences
Copyright (c) 2022 Sunday Agbor Mbu, Ayuketang Nso Maurice
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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