Is recapitalisation regulation a disrupter? Survival and sustainability of indigenous Ghanaian banks

Abstract

Purpose This study aims to explore how the implementation of the recapitalisation by the Bank of Ghana disrupted the indigenous banks’ sources of accessing capital to raise the required amount within the mandatory stipulated time/deadline. Design/methodology/approach This study used purposive sampling techniques to interview key role players and senior members involved in the bank’s recapitalisation process and/or have in-depth information on the 2017–2018 recapitalisation period. Findings This study revealed that government directives significantly shape banks regulations and strategy; accordingly, any state-directed policies must be communicated cautiously, well explained and implemented to reduce any negative consequences. Originality/value This study makes a significant contribution to knowledge by exploring how directives (arbitrary) of regulatory bodies can influence the business as well as its other stakeholders (such as the depositors, public, among others). Secondly, the study highlights how the delays in government support may not derive the benefits expected by the regulator.

To be Ethical or Unethical in Organisation: The Role of Perceived Personal Values of Financial Accounting Students on their Ethical Behaviours

“…The scholar further stated that the recent closure of seven banks as a result of poor banking practices has led to a loss of about 2,700 jobs and amassing about 7.9 billion cedis debt on the government. This worrying situation in Ghana's financial sector seems to have contributed to the lack of trust in the stewardship of those charged with governance and to the extent of customers of some local banks making panic withdrawals (Takyi & Naidoo, 2022).…”

“…Despite strengthened government regulations such as increasing of minimum cash reserve ratio, consolidation of some micro-finance and revoking the licenses of some banks (Takyi & Naidoo, 2022), as well as the presence of professional ethical codes of conduct, cases of unethical accounting practices among accountants in Ghana seems to still persist in both the public and private sectors. These cases of inappropriate behaviours and actions of accountants in Ghana could be attributed to their personal values and belief systems.…”