Abstract:
ABSTRACT
The study dwell on the aftermath of the current bank crisis and the subsequent
reforms to examine the extent to which depositors’ confidence were affected
as well as the role that depositors’ self-efficacy plays in the extent of the effect
on depositors’ confidence. Primarily, the study sought to examine the
relationship that exist among bank crisis, self-efficacy and depositors’
confidence in the financial sector of Ghana. The purposive sample was used to
sample a total of 100 depositors from the Cape Coast Metropolis for data
collection and structured questionnaire was used for the data collection. The
distribution free asymptotic SEM was used to model the simultaneous
relationship between self-efficacy and investors’ confidence in the mist of
bank crisis. The results suggested that bank crisis has adversely affected the
confidence level of depositors in the financial sector of Ghana. Depositor
confidence level during the crisis statistically depended on their sex and age
group. A significant bi-directional relationship was observed between
financial self-efficacy and depositors’ confidence during crisis. The bankers
were found to have adequate knowledge on the way forward in ensuring
confidence in the financial sector of Ghana. The bankers recommended law
enforcement, introduction of depositor’s insurance in Ghana, education of the
depositors to manage their expectation and seek more information on
investment product before investing huge amounts as the way forward reduce
the possible effects of the crisis. The Central Bank must put in measures to
boost depositors’ confidence through sensitisation programmes
