Accra Sept. 20, GNA – A Financial Expert has
encouraged banks to consider merging with other banks in order to meet the Bank
of Ghana’s minimum capital requirement and operate viably.
Mr Emmanuel Adu-Sarkodee, the Chairman of CDH
Balanced Fund Limited said: “Merger is the best way to go in the current
dispensation. I see more mergers happening in the banking sector if banks are
unable to find the minimum capital requirement.
“Local banks need to merge to curtail the
‘internationalisation of banks’ in the country.”
Mr Adu-Sarkodee was addressing journalists
after the CDH Balanced Fund Limited held its Third Annual General Meeting, in
Accra on Thursday.
CDH Balanced Fund is a collective investment
scheme, particularly, of mutual funds, managed by the CDH Asset Management
On the decision by the Bank of Ghana to
consolidate some five banks, Mr Adu –Sarkodee said he saw the actions by as a
process of “refinery”
According to him, the current Banking Act, Act
931, “seeks to refine the banking sector by way of straightening corporate
governance and keep local banks in check.”
He said the act of refining the banks would
not stop any time soon once the banking sector was undergoing various
Mr Adu- Sarkodee assured shareholders that the
CDH Balance Fund was poised to attain more growth hence it was ensuring that it
adhered to good corporate governance practices.
“CDH has undergone a lot of refinery, you know
our history, hence we don’t expect it to be hit by any directive because we are
adhering to all the rules of the game.”
On the current depreciation of the cedi, Mr
Adu-Sarkodee noted that the situation was not as bad as it used to be in the
“This does not mean we are not feeling it.
Some of our customers are crying over the situation and the trends seem to
affect the payment of some insurance claims,” he noted
He emphasised that the depreciation of
currency was not only happening in Ghana but also in some East Asian countries.
He explained that external factors were rather
to be blamed for situation, adding that the situation was not helped by the
fact that Ghana was a net importer of goods.
The Financial Expert said the prospect of the
Ghana’s economy was bright if the country would manage its financial systems