ABSTRACT

Banking crises are usually followed by low credit, GDP growth and high job insecurity. This is because crises tend to take place during economic and social downturns. The banking crisis affected not only different institutions and companies, but also the economic and financial livelihood of people, especially banking sector workers. Ghana is far from getting out of this crisis, and its impact may be measured by different indicators.

This paper seeks to investigate the impact of banking crises on the workers of the affected banks in terms of employees’ cash flow, coping strategies of the employees after the banking crises, lifestyle towards investment and standard of living and financial level of the employees before and after the crises. In order to achieve the objectives of the study, a well-structured questionnaire were administered to 90 employees of Consolidated Bank Ghana.

From the research, the restructuring process of the banking sector has had a considerable impact on earnings, investment decisions, employment security and the general life style of employees of the affected bank. Measures to help workers cope with the crisis were also discussed. This includes adequate, psychological preparedness of employees, well-designed unemployment benefits, social protection policies and institutionalization of a banking sector labour union.