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Ghana’s 2018 banking sector crisis: The role of corporate governance factors

Show simple item record Torku, King 2021-04-22T11:23:18Z 2021-04-22T11:23:18Z 2020-05
dc.description Undergraduate thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2020 en_US
dc.description.abstract Discussions and analysis’ after the 2018 banking crisis have placed the burden of blame on both managers of the failed institutions and the Bank of Ghana. This study intended to investigate issues with the manner of corporate governance employed by leaders of the collapsed institutions and how these factors contributed to the banking crisis. A total of 186 newspapers between 2017 and 2019 were scanned for insight regarding the direct actions of managers and shareholders that led to the collapse of their banks during the 2018 Ghanaian banking crisis. 58 texts were identified, and a content analysis was conducted. The actions were also analyzed and categorized using the IFC’s corporate governance methodology. This study provides valuable insight regarding the actions of bank managers and shareholders and how these actions caused the collapse of their banks. The actions of managers and shareholders leading to the crisis included: interrelated lending, loan approval without the necessary process, granting of loans earning no interest, lending to risky borrowers, breaching the single obligor limit, the use of depositors’ funds as personal funds, shareholder excessive control of managers, exaggerating investments, overstating loans and advances to customers, fabricating investments, re-engineering capital, misuse of BoG liquidity support, use of bank funds to pay off obligations in related companies, infrequent board meetings, non executive directors disregarding their duties and the approval of large compensation packages. en_US
dc.description.sponsorship Ashesi University en_US
dc.language.iso en en_US
dc.subject Bank of Ghana en_US
dc.subject banking sector en_US
dc.subject regulation en_US
dc.subject IFC corporate governance framework en_US
dc.subject bank managers en_US
dc.subject bank shareholders en_US
dc.subject non-performing loans en_US
dc.title Ghana’s 2018 banking sector crisis: The role of corporate governance factors en_US
dc.type Undergraduate thesis en_US

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