Corporate governance and bank failure: Ghana’s 2018 banking sector crisis

King Torku and Esther Laryea

Journal of Sustainable Finance & Investment, 2026, vol. 16, issue 3, 874-894

Abstract: Discussions and analysis following Ghana’s 2018 banking crisis have placed the burden of blame on both managers of the failed institutions and the Bank of Ghana. This study investigates the corporate governance practices employed by leaders of the collapsed institutions and how these factors contributed to the country’s banking crisis. A total of 186 newspapers between 2017 and 2019 were scanned for insight regarding the 2018 Ghanaian banking crisis and a content analysis method was employed in analysing the selected text. The findings reveal that some of the actions of managers and shareholders that led to the crisis included: interrelated lending, loan approval without the necessary process, lending to risky borrowers, and breaching the single obligor limit among others. The study recommends that the Central Bank reviews corporate governance regulation and guidelines with the hope of curtailing similar manager and shareholder actions which could prevent future bank failures.

Date: 2026
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DOI: 10.1080/20430795.2021.1981210

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