This study investigated the causes of takeovers in Ghana with specific interest in UT and Capital Bank, due to the shock value it created among Ghanaians at the time. The specific goal of this project was to scrutinize the reasons that led to the takeovers of these two Banks and whether the central bank could have prevented the failures of these banks.
The study adopted the quantitative approach to research. The study used ratio analysis. The Data was obtained from the financial statement of both UT and Capital Bank. The period considered was between the year 2012 to 2014. The reason for this range was due to the availability of the financial statements both banks presented to the general public. The findings of the study revealed that both banks had weak indicators which they didn’t improve in the subsequent years and also didn’t follow the statutory regulations and guidelines provided by the central bank when they were in crisis, with regards to the central bank. The lack of proactiveness on their part when both banks showed signs of failure is an issue they have to address. It is my hope that the central bank comes to the aid of banks sooner rather than later.