Examining the Survival Strategies of Banks in Ghana in the Post - 2017 Banking Crisis

Abstract

Financial crises affect many aspects of an economy. Ghana experienced an unprecedented banking crisis in 2017 which precipitated the Bank of Ghana and the Government taking clean up exercises to revamp the sector. Conversely, there’s no evidence on the survival mechanisms adopted by individual banks post the crisis. Thus, objective of this study was to look into the survival strategies adopted by Ghanaian banks as they transitioned from the 2017 banking crisis to the post-crisis clean-up period.The study collected and analyzed data using a quantitative research approach. Eighty (80) bankers were chosen to participate in the study by completing a questionnaire. With the use of the Statistical Package for Social Sciences, descriptive statistics were utilized to present the findings. In addition, correlation and multiple linear regression were used to analyze the impact of strategy execution on the performance of the sampled banks using inferential statistics.According to the results of the study, there is a significant relationship between the various techniques used and the banks' performances. Product differentiation as an implemented strategy contributes most to the performance of banks. The implementation of effective survival strategies to increase banks' performance and drive organizational effectiveness was recommended by the study.

Keywords: Survival strategies, Bank Performance, Financial crisis, Product differentiation, Corporate governance, Ghana

DOI: 10.7176/RJFA/13-2-04

Publication date: January 31^st 2022