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

6.2 Recommendations for Regulators and Policy Makers
 
In respect of this study results, the under mentioned serves as 
recommendations to policy makers, regulators, shareholders, investors, 
business executives and industrial practitioners. 

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 Policies makers and regulators needs to provide adequate support to the 
banking sector which would in turn extend such support to other 
institutions for national development purposes. 
 The banking sector needs to be supervised and robustly monitored by 
the central bank and stakeholders to ensure viability and sustainability. 
The following areas needs to be perpetually monitored, Capital 
Adequacy, liquidity management, Assets quality, management efficiency 
and reserve management. 
 Regulators should monitor the interrest rate charged by banks in order 
to ensure a level playing field among borrowering institutions and 
borrowers. 
 
İndustrial practitioners should strengthen their ties with the banking 
sectors in order to productively negotiate for better rates and increased 
banking facilities to finance current operations and also expansion 
projects. 
 Executives of the institutional sectors should be able to accurately 
evaluate their financial needs and projections in order to ensure that 
banking facilities requested for are in concert with the purpose and 
volume. They must make proper repayment plans in order to avoid 
defaults which would provide room for penalty charges and eventually 
adversely affects earnings. 
 
6.3 Further Future Research Direction 
In respect to help address the problem of endogeneity which can be caused 
by variables influences on the other or by an observed variable, this current 
study recommends further research direction on this topic. 
This study suggests the inclusion of small and long serving communication 
institutions in order to enhance the generalization of the results, if only data are 
available. Similar Studies in relation to banking influence on other sectors 
financial performance in Sierra Leone and or the world over using the same 
variables and models but with a longer time period to determine the 

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relationship, in order to provide support to this research work and develop 
better understanding and also add to literature on this research area.
The work of regulators and policy makers may be easy if they are au fait with 
the exact aspect of the banking sector activities that needs to be improved on, 
in order to encourage other economic sectors to benefit from it. Future study 
can also investigate why the communication sectors received less in terms of 
borrowings compared to other sectors in the economy as this have some policy 
implications for banking development in Sierra Leone. 
Literature has shown that Banking development is crucial for other economic 
sector financial performance. In that respect, the level of banking development 
that stimulate significant financial performance has not been fully well 
empirically tested in this study. This research did not take into account 
Operating Profit Margin (OPM) as dependent variable. In case of the 
independent variables, inflation rate, exchange rate and floating rate are 
considered essential in determining financial performance and should be taken 
in consideration for future research. 

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