Ghana s banking sector clean up: its repercussions on customer attitudes towards banking

Abstract

Purpose- This study seeks to investigate customer’s attitude towards banking following Bank of Ghana’s banking sector cleanup exercise with focus on market women in the Yilo Krobo municipality. This manuscript represents a starting base for similar researches to be conducted in other selected municipalities in Ghana. Methodology- The study considered both the primary data source which were obtained through the use of self-administered survey questionnaires from a total of 198 conveniently selected market women in the Yilo Krobo Municipality of Ghana, and secondary data source mainly through the review of existing literatures from journals, newspapers and articles. Findings- The study revealed an opposing attitude towards banking among market women, as more than 70% of market women in the municipality had their banks or financial institutions dissolved and for that matter losing their business capital and personal savings. This position has resulted in only a few market women (18%) maintaining high confidence in the banking sector. The majority of market women rated their confidence level as moderate (41%), low (33%) and no (8%), citing unpaid locked up funds, the fear of losing their savings again, loss of trust and to some extent a suspicion of political interferences in banking activities in the country as reasons for their ratings. Conclusion- It is recommended that, a similar exercise should not be carried out in the future as its ripple effects on customers can further ruin their trust completely in the banking sector. Furthermore, in the wake of dissolution of any institution, a much more attention should be given to how customers will be paid as early as possible to save their businesses and livelihoods.