Corruption and Bank Failure in Ghana Corruption and Bank Failure in Ghana
The main objective of this paper is to fill a research gap by examining the relationship between corruption and possibility of bank failure in Ghana. To achieve this objective, the study examined the effect of corruption and bank failure in Ghana. The study finds that bank size, capital, economic well-being, corruption, and profitability are the main determinants of bank failure in Ghana. Specifically, although corruption increases banks' profitability in Ghana, it also has the potential of increasing their vulnerability to fail. This emanates from the fact that corrupt moneys are made for various reasons. Therefore, when the time is due for such moneys to be used for their intended purposes, they have the tendency of reducing the liquidity of banks as well as shocking their stability.