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Ghana Banking System Failure: The Need for Restoration of Public Trust and Confidence

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  • Kwabena Owusu Banahene

    (Southern Crescent Technical College, Griffin-GA, United States)

Abstract

The recent bank failures in Ghana are the results of a combination of factors such as regulatory lapses, ineffective corporate governance, lack of ethics, and the value system. These deficiencies, which are not in line with the core values of banking operations, are not isolated occurrences. These deficiencies are punctuated events in a spectrum of behaviors that exist in a complex culture with competing and conflicting values and interest that create a moral dilemma for bankers and employees throughout the banking system. From mainstream commercial banks to microfinance institutions, there has been an opulent display of incompetence, unethical behavior, and sheer disregard of precise regulations and operational procedures causing lossof depositors’ funds. This paper explains failure of regulation in Ghana banking industry, lack of corporate governance, and lack of ethical practice. This paper also provides some recommendations that may be considered when restructuring the banking system in Ghana.

Suggested Citation

  • Kwabena Owusu Banahene, 2018. "Ghana Banking System Failure: The Need for Restoration of Public Trust and Confidence," International Journal of Business and Social Research, LAR Center Press, vol. 8(10), pages 1-5, October.
    • Handle: RePEc:lrc:larijb:v:8:y:2018:i:10:p:1-5
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    References listed on IDEAS

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    1. Russell Kashian & Robert Drago, 2017. "Minority-Owned Banks and Bank Failures After the Financial Collapse," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(1), pages 5-36, February.
    2. Abdul Latif Alhassan & Michael Lawer Tetteh & Freeman Owusu Brobbey, 2016. "Market power, efficiency and bank profitability: evidence from Ghana," Economic Change and Restructuring, Springer, vol. 49(1), pages 71-93, February.
    3. Bushee, BJ & Noe, CF, 2000. "Corporate disclosure practices, institutional investors, and stock return volatility," Journal of Accounting Research, Wiley Blackwell, vol. 38, pages 171-202.
    4. Abdul Alhassan & Michael Tetteh & Freeman Brobbey, 2016. "Market power, efficiency and bank profitability: evidence from Ghana," Economic Change and Restructuring, Springer, vol. 49(1), pages 71-93, February.
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