Leadership Behavior and Loan Default Management in The Banking Sector of Ghana: The Moderating Role of Regulatory Governance

This study explores the critical role of leadership in managing loan defaults within banks, particularly in emerging economies where financial institutions are pivotal to development. It examines how leadership behaviors influence loan default management and the moderating effect of regulatory governance in this dynamic. Employing a mixed-method approach, the research gathered responses from 313 individuals involved in the credit delivery cycle in Ghanaian banks. The findings underscore the importance of autocratic leadership in the loan recovery process, suggesting that leaders with unilateral decision-making authority can enhance the effectiveness of managing defaults. Furthermore, the study recommends structured leadership frameworks that ensure timely completion of tasks by team members to optimize loan recovery outcomes.