Impact of cocoa price shock on the bank profitability in Ghana

Cocoa unrelentingly is a valuable crop and key foreign exchange earner in Ghana regarding other agricultural commodity exports. The focal drive of this study was to examine the impact macroeconomic variables including cocoa price bank specific characteristics on profitability during period 2010 2020. extends analysis cointegration, Vector Error Correction Model (VECM) with that impulse response provided vigorous long run short dynamic effects profitability. confirmed negative relationship between coca run. estimated error correction term shows convergence banking sector towards long-run equilibrium. causality test results indicated there unidirectional running from Bank Thus, prices have significant effect raise issues for counter-cyclical policies, such as revenue stabilization funds boom. Policy makers may thoughtfully consider significance when framing policy among others.   Key words: price, profitability, (VECM), response, causality.