Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said that weaknesses leading to the collapse of banks are not overnight.
He cited unviable and unsustainable business models and strategies as the root causes of banks' vulnerabilities and failures.
While sudden external shocks such as Covid19 or the global financial crisis could be greatly impactful and cause the immediate demise of some banks, he said, the root causes are generally more structural.
If not identified in time and allowed to fester, these vulnerabilities will make a bank's activities increasingly unsustainable, to the point where it becomes non-viable, Dr Addison said.