Banking sector cleansing should’ve been done ‘more quietly’ – Goosie Tanoh

Business News of Friday, 14 September 2018

Source: citinewsroom.com

2018-09-14

Goosie Tanoh

A National Democratic Congress (NDC) flagbearer hopeful, Goosie Tanoh, believes the Bank of Ghana made too much of a show about the banking crisis.

Speaking on Metro TV’s Good Evening Ghana, he noted that the press conferences “were too much.”

Mr. Tanoh said the BoG’s priority ought to be on restoring confidence.

“What I would have liked is less publicity and more shoring up of confidence in the banks. Right now there is a lot of lost confidence in the banks… quietly, you move. You move and implement quietly so that you restore that confidence that was lost.”

Between August 2017 to August 2018, seven indigenous banks have had their licenses revoked over liquidity challenges.

Five of the collapsed banks; namely Royal Bank, Beige Bank, Construction Bank, Sovereign Bank, and uniBank were merged into Consolidated Bank Ghana Limited.

Mr. Tanoh also lamented the increased partisanship in the country which he said could affect the investigations.

“When you intervene, you must be impartial and not witch-hunt, and I think people got the sense that some of this was a witch hunt and so on.”

“I think that there is too much of this partisanship in this country. There is too much nonsense in this country. We need to get rid of it and do the right thing,” Mr. Tanoh said.

‘It makes no sense to deliberately collapse local banks ‘– Akufo-Addo

President Akufo-Addo has said that his government is not on a deliberate mission to collapse the country’s indigenous banks.

Speaking for the first time on the recent shake-up in the banking sector that has resulted in the collapse of seven local banks, he said the moves are necessary to streamline the sector and strengthen it.

Addressing the Ghanaian community in Rwanda’s capital, Kigali on Thursday, the President said it would be “dangerous” for the country’s future if indigenous banks are pushed out of the Ghanaian economy.

“The decision that the central bank has taken which has affected seven important indigenous banks who were being supported by the taxpayer through the Bank of Ghana, all together, the indebtedness of these seven banks amounted to 8 billion cedis,” he said.

Banking crisis a result of lawlessness – Akufo-Addo

President Nana Akufo-Addo also attributed many of the problems that plague the country to the disregard for law.

He was making reference to the banking crisis that has seen the collapse of seven indigenous banks over a 12 month period.

“The story of every bank that has had problems, be they indigenous Ghanaian banks or international banks… each one can be traced to someone or some people breaking the law or trying to cut corners by flouting regulations,” he said at the 2018 Annual Conference of the Ghana Bar Association on Monday.

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