Bank failures in Ghana. A case study on the collapse of the UT bank

By Project Professional Ghana

Chapter 1

This study investigates the causes of bank failures in Ghana, focusing on the collapse of UT Bank. Bank failures globally are often triggered by external economic factors, such as inflation, exchange, and interest rates, as well as regulatory inadequacies. In Ghana, high inflation and fluctuating exchange rates have negatively impacted banking sector stability, limiting foreign investment. Regulatory interventions, like raising capital requirements, were enforced after a credibility crisis in 2015. The study addresses the gap in literature by examining UT Bank’s performance relative to economic indicators before its collapse. Key objectives include analyzing UT Bank’s performance and its relationship with economic factors.