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

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 loss of 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.