This study attempts to investigate the impact of information technology (IT) investments on efficiency among banks in Ghana. The study further tests the presence of the productivity paradox in the Ghanaian banking sector. This study employs a random effect model (REM) using 23 banks in Ghana from 2000 to 2019, thus yielding 460 observations. The study revealed that there is a significant and negative relationship between IT investments and cost to income ratio used as a surrogate for banks' efficiency. This result, therefore, suggests that investment in IT translates into banks' efficiency. The study further revealed that varied results are produced when the same relationship is tested in terms of banks' ownership structures, different minimum capital requirement regimes and listing status of banks in Ghana. The findings also suggest that while investment in technology by locallyowned banks enhances efficiency, the introduction and changes of minimum capital requirements do not translate into banks' efficiency. The results have implications for the management of banks, governments and regulators. It shows the need for policy and investments that improve state-of-the-art technology.banks, cost to income ratio, efficiency, random effect model | INTRODUCTIONProductivity paradox of technology developed and popularized by Solow (1987) posits that as more investment is made in technology, performance may go down instead of up. The productivity paradox of technology is becoming increasingly prevalent in the service sector (Brynjolfsson, 1993). Notwithstanding, the empirical evidence on the banking industry is limited.Recent studies document that there has been considerable advancement in the banking industry globally over the years (Kayisire & Wei, 2016;Pathak et al., 2019). Kayisire and Wei (2016) concluded that most developing countries, particularly the African nations, have shown a significant improvement in technology adoption and usage during the last two decades. Abor (2005) asserts that apart from staff costs and other operational costs, technology is usually an item in the budget with the highest cost of most banks, and the fastest-growing item as well. A major change noticed in the Ghanaian banking system was the introduction of information technology (IT) in their operations. In the past, governments have attempted several digitization projects and policies. A sustainability-driven move embarked by the present government on a call for paperless transactions in the country has been embraced by a lot of businesses. Banks have also responded positively to this call by pursuing vigorously the integration of IT in modern banking services. Key among these initiatives are as follows:First, paper works have been reduced with the introduction of branch digitization projects that seek to automate branch banking. Second, to reduce the human traffic in the banking halls, staffs have been trained to educate and encourage customers to use the bank's plethora

The present study evaluates the market structure of Ghana’s banking industry and estimates the nature and degree of competition. This study uses non-structural methodology proposed by Panzar-Rosse Model known as “H-statistic” to empirically assess competitiveness in the Ghanaian banking market. The study uses 23 banks in Ghana from 2000 to 2019, compiled and reported by Ghana Association of Bankers (GAB). The study results show that banks in Ghana derive their revenue in conditions of monopolistic competition. Thus, Contestable markets theory and Chamberlainian competition theory are validated by the study results. Furthermore, the study results revealed that from 2000 to 2019, after various structural reforms including the implementation of the FINSAP, competition in the Ghanaian banking sector increased. Finally, when the dataset was decomposed into local and foreign banks, the results indicate that monopolistic competition market conditions are found for both local and foreign banks. Managerially, the presence of a monopolistic market condition adds to the call for managers of the banks to consider factor input prices in an attempt to generate more revenues. Second, to avoid negative consequences of competition, managers of these banks should not rely on a single income source but also indulge in non-intermediation activities. In terms of policy, pro-structural shift policies that have helped with the transition from a monopoly structure to a monopolistic competition free entry or contestable market structure should be rigorously pursued by the policymakers. Besides, policy directives that enhance greater consolidation in the banking sector shouldbe pursued rigorously. Finally, the results from this study could help policy-makers to fashion an appropriate optimal intervention and stability policies geared towards enhancing banking stability at different levels of bank competition.