Skip to content
Research Article Open access CC BY 4.0

The Impact of the Collapsed Banks on Customers in Ghana

Jonas Yomboi, Clement Nangpiire, Elijah Aloriwor Kutochigaga, Mohammed Majeed

Asian Journal of Economics, Business and Accounting · pp. 15–25 · Published 29 Oct 2021

10.9734/ajeba/2021/v21i1730487

Abstract

In an effort to overhaul and stabilise the banking sector, the Bank of Ghana revoked the licences of nine Ghanaian banks and one was downgraded to savings and loans institution which later folded up summing up to ten banks. This paper investigated the effects of the collapse banks on customers.  Using a quantitative approach, the study revealed that the collapse of the banks had major impacts on customers including loss of capital, disincentive to do further savings, inability to pay creditors and a general decline in the capacity to handle needs including educational plans. In addition, the study established that the most affected customer category was current account holders. Among others, the study recommends that the Bank of Ghana should be cautious in handing distressed banks, and also encourage self-regulation among banks mainly through the Bankers’ association. It is also recommended that over ambitious branch network expansions should be scrutinized regularly by the Central Bank. As part of the governance framework, universal banks should also put in place mechanisms to monitor and sanction both internal and external auditors when their works fall below expectations.

Collapse downgraded backbone consolidated savings

Cited by 11

Balancing the books and values: the interplay of ethics in tertiary accounting education

Donkor Nawaah, S. Akhtar, Syed Hasan Jafar · Cogent Education · 2024

The Influence of Corporate Social Responsibility (CSR) on Customer Loyalty Mediated by Customer Satisfaction, Trust, Word of Mouth (WOM), and Company Reputation

Wulan Rahmawati, Unggul Kustiawan · Dinasti International Journal of Education Management And Social Science · 2024

Antecedents of Compliance with Anti-Money Laundering Regulations in the Banking Sector of Ghana

B. Hoffman, J. Okeniyi, S. Samuel · Journal of Risk and Financial Management · 2024

The effect of corporate reputation on customer loyalty in the Ghanaian banking industry: the role of country-of-origin

D. D. Gli, E. Y. Tweneboah-Koduah, Raphael Odoom · African Journal of Economic and Management Studies · 2023

Sustainability Reporting and Capital Adequacy of Listed DMBs in Ghana, Kenya and Nigeria

Emmanuel Dare Otitolaiye, Trimisiu Tunji Siyanbola, Appolos Nwabuisi Nwaobia · International journal of economics, business and management research · 2023

Banking on IoT in Transforming Financial Services for the Digital Age

Victoria Manu · Navigating the Fintech Frontier Transformative Innovations and Risk Factors in Financial Services · 2025

Gender Equality and Women’s Empowerment in Banking

Khadijah Iddrisu, Isaac Ofoeda, Osman Issah · Sustainable Development Goals Series · 2025

The Impact of Continuous Learning on Employee Performance in Dynamic Hospitality Environments: The Mediating Role of Knowledge Sharing

Yamima Dauda, Afia Nyarko Boakye, Esther Asiedu · Algorithms for Intelligent Systems · 2025

The Impact of Blockchain Technology on the Banking Sector

Jayadatta Shreepada, Mohammed Majeed, Jonas Yomboi · Navigating the Fintech Frontier Transformative Innovations and Risk Factors in Financial Services · 2025

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

11

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.