Evaluating Strategic Initiatives that Led to the Collapse of Banks in Ghana : A case Study of Unibank Ghana

The stability of a country’s economy heavily relies on the resilience of its banking sector. In emerging markets like those in Africa banks often face challenges that can result in institutional failures This research fills an important gap by investigating the measures and legitimacy practices within Ghana’s banking sector focusing on UniBank as a case study to uncover the factors contributing to its collapse. Using a qualitative research method the objective is to gain a deeper insight into the strategic actions and credibility practices in the banking industry of Ghana with a specific focus on UniBank Ghana and shed light on what led to the collapse of Unibank. Through a case study approach the research was conducted through interviews with executives, at UniBank Ghana. The analysis examines reports, regulatory documents, and media outlets to validate the findings. The implications of this research are significant, suggesting that for banks in developing economies, there is a vital need to integrate robust strategic planning with compliance to enhance legitimacy standards to foster stability. The findings highlight an interaction between strategic management limitations and flawed legitimacy practices as key factors behind banking crises, in Ghana. Despite attempts to uphold credibility through responsibility and community involvement, these factors were not enough to avert the bank’s collapse. The discussion highlights the significance of banks in economic environments to strike a balance between expansion strategies, comprehensive risk evaluation, and adaptability in addressing external factors. This study contributes to the discourse on governance and the resilience of institutions emphasizing that strategic frameworks geared towards improving competitiveness must be adaptable based on economic and regulatory landscapes for enduring sustainability, over time.