The six reasons why Ghana's banks are in crisis include poor management, an increase in delinquent debts, corporate governance, among others. These can be overcome if regulation is improved and banks receive more resources.
The six reasons why Ghana's banks are in crisis include
In the last years, banks in Ghana have been through a deep crisis that has affected different sectors of society. This crisis has multiple causes that include:
- Increase in delinquent debts: Hundreds of users ask for loans but they do not pay on the due date.
- Lack of economic resources or undercapitalization: Banks in Ghana have great debts but few resources.
- Poor management: There are serious managing problems within banks that do not allow them to be profitable.
- Corporate governance: Issues in the rules and protocols followed by banks.
- Control of private sectors over government or public banks: In the last years, the private sector has overtaken banks that belonged to the government or indigenous tribes.
-Regulatory issues: Laws that regulate all banks are not efficient and they do not address the crisis.
Moreover, these six negative roots of the Ghana banks crisis can be overcome if:
- The general regulation for banks is adapted to meet the new situation.
- Banks improve their internal management and regulation.
- Loans are only approved if the user can pay them by the due date
- Privatization is stopped or minimized.
- Banks receive economic resources from the government or other official entities
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