Market failure in finance depends on problems of information and externalities. Regulation addresses these problems through conduct of business rules and prudential requirements. This approach has recently proved insufficient to prevent financial crises. Governments and central banks had to step in with massive safety nets in order to prevent financial meltdown. Ghanas financial system in recent years have experience financial crisis.

1. Outline and discuss any five (5) major factors contributing to this recent banking sector crisis in Ghana. 15 marks

Consider any five (5) pragmatic regulations and policies that policy makers can adopt to forestall the future occurrence of this banking sector crisis.