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

 
 
 

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DEDICATION 
 
 
 
 
 
 
 
 
 
 
 
To Alvia and Mayra 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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ABSTRACT 
 
 
THE IMPACT OF THE BANKING SECTOR DEVELOPMENT ON 
THE FINANCIAL PERFORMANCE OF THE COMMUNICATION 
SECTOR IN SIERRA LEONE 
 
The banking sector is regarded as an engine of growth especially in sub-
Sahara nations and also considered to be the blood-line for growth for other 
institutions and economic development. This is an explorative experimental 
study that strive to examined the impact of the Banking Sector development 
on the financial performance of the communication sector in Sierra Leone. 
Secondary Panel data were used from 2001 to 2020, and were obtained from 
audited annual financial statement of the selected institutions. The test for 
stationarity was done by using the Augmented Dickey Fuller (ADF) unit root 
test which confirmed that the data are stationary at first difference and the 
Johansen cointegration test was also conducted and confirmed that, the 
variables are integrated and cointegrated. The ARDL model was used to 
established the relationship. Results revealed that, loans and advances 
volume have a positive significant impact on the financial performance of the 
selected communication institutions in Sierra Leone, whiles interest rate and 
debt rate prove to have a negative insignificant impact on the financial 
performance of the communication sector in Sierra Leone. The results further 
established that, there is an evidence of a positive long-run relationship 
between the banking sector services to that of the financial performance of the 
communication sector in Sierra Leone. Stability tests and other diagnostic test 
were conducted to examine the validity of the results and to also established 
that, the model can be used for policy formation and implementation in Sierra 
Leone. 

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 In respect to the above, regulators and policy makers should provide adequate 
support to the banking sector to enhance their productivity and also ensure 
sustainability and stability, which shall in turn provide support in respect of 
increased loan and advances to other sectors within the economy in order 
foster national economic growth.
 
Keywords: Banking Development,Communication Sector, Financial 
Performance, Return on Assets, Interest Rate, Loan and Advances, Debt 
Ratio, Autoregressive Distributed Lag.

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