During the period, 2017-2019, the Bank of Ghana (BOG) carried out a planned "financial sector restructuring". In the process, some financial institutions were found to be wobbling out of business however, a major client (PN Bank Ltd) of your firm presented a summary of their current financial sector indicators (benchmark) to your firm for comparative assessment with BOG benchmarks.

To execute this task, the 2019 financial indicators submitted by the Financial Controller of PN Bank to your firm, are listed below:

Capital Adequacy Ratio (CAR) 9.81%

Liquidity ratio 12.5%

Return on Assets 18%

Fixed Assets/Total Assets ratio 41%

Net Interest Margin 15%

Non-performing loans (NPL) 28%

Assets Quality 35%

Required:

As a Junior partner of Nyabey and Associates, you have been tasked to produce a report to the CEO of PN Bank explaining the following:

i. A comparative analysis of PN Bank's performance (as stated above) with official Bank of Ghana financial indicators.

ii. List and explain the major banking sector performance indicators deployed by BOG to assess the performance of Banks in Ghana

iii. In your opinion, outline and explain five (5) justifications for BOGs clean-up exercise in the financial sector.