The impact of the banking sector development on the financial performance of the communication sector in sierra leone

VAR - Value at Risk 
VEC - Vector Error Correction 

---

1 
INTRODUCTION 
 
Banks over the decades has being the engine of economic growth as they 
moved from their traditional role of just providing contemporary banking 
services and embracing a sustainable banking system that goes beyond just 
circulation of money, wealth generation, capital formation, savings and 
checking accounts offering, amongst others. The banking system have now 
incorporated selling policies, offering equipment leasing, making venture 
capital loans, providing expert advices to customers and other financial related 
services. 
Banks plays a key central role in 
a country’s financial structure and the national 
economy at large. Their unique nature aids the easy flow of money within all 
sector of the economy and also among other financial institutions, they do also 
support the payment system that is widely used on a day to day basis. Banks 
requires robust regulations and controls as they are inherently unstable 
because of their business model and risky environment and also their balance 
sheet structure which portray their uniqueness and position them in a special 
place in the economy.
This is an experimental explorative study in Sierra Leone that seeks to examine 
the impact of banking development sector on the financial performance of the 
communication sector in Sierra Leone for the past twenty (20) years starting 
from 2001 to 2020, it also discusses the role of banks and also strive to 
establish the relative relationship between banking services in respect of loan 
and advance on financial performance of firms. However, this study discusses 
the role of banks in their intermediation role within the economy sectoral 
development, which is not that common in previous literatures. The following 
sections of this study, will high spot relevant details of the study and examine 
previous literature, published articles, reports and developed hypothesis to 
bring forth critical evidence of the significance of this study. The other sections 
shall deal with the methodology, empirical analysis, data and data collection. 
The results, discussion and recommendations follow thereafter. 

---

2