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

Abstract

Purpose– This study aims to explore how the implementation of the recapitalization 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 recapitalization process and/or have in-depth information onthe2017–2018 recapitalization 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.