|
Getting your Trinity Audio player ready...
|
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has advised the government and the Bank of Ghana (BoG) to exercise caution in reconsidering the reinstatement of licenses for local banks affected by the banking sector cleanup. He warned that rushing the process could disrupt the sector and undermine confidence in the economy.
Discussions on restoring licenses for some collapsed banks have intensified following the appointment of Dr. Johnson Asiama as the new BoG Governor. The founder of GN Bank, Dr. Papa Kwesi Nduom, has consistently argued that his bank was unfairly closed, while Seidu Agongo, the majority shareholder of the defunct Heritage Bank, has also voiced similar concerns. However, before his early retirement, former BoG Governor Dr. Ernest Addison strongly opposed reversing the revoked licenses.
With foreign institutions now controlling two-thirds of Ghana’s 23 commercial banks, concerns about local ownership in the banking sector are increasing. Despite this, Professor Quartey has urged stakeholders not to rush decisions without proper scrutiny. He stressed the importance of conducting an independent review before any licenses are reinstated.
“I think we should tread cautiously. You don’t want to set such a precedent where the Central Bank takes a decision and then it is reversed. If anybody has issues with that decision, that person can challenge it in court,” he stated in an interview with Citi Business News.
He further emphasized the need for a balanced approach, saying, “We have listened to one side, which calls for further investigation. Let us not be in a haste to reinstate people who perhaps have caused financial loss to the state.”
Email Daily Mail GH: stories@dailymailgh.com or
Whatsapp: +233(0)509928122
