The Institute of Statistical, Social, and Economic Research (ISSER) Director, Professor Peter Quartey, has asked the government and the Bank of Ghana (BoG) leadership to exercise caution when reevaluating the reestablishment of licenses for local banks impacted by the banking sector cleanup.
He cautions that hurrying the procedure could cause the industry to become unstable and undermine trust in the whole economy.
Since Dr. Johnson Asiama was appointed as the new governor of the Bank of Ghana, there has been a greater drive to reinstate licenses for some banks that have failed.
Dr. Papa Kwesi Nduom, the founder of GN Bank, has consistently insisted that the closing of his bank was unfair, and Seidu Agongo, the principal shareholder of the now-defunct Heritage Bank, has voiced similar opinions.
Former BoG Governor Dr. Ernest Addison, however, was adamantly against restoring the revoked licenses prior to his early retirement. Since two-thirds of Ghana’s 23 commercial banks are currently owned by foreign companies, worries about local ownership in the industry are intensifying.
Despite these reservations, Professor Peter Quartey, a financial analyst, has advised against making snap judgments. Before taking any action, he underlined the necessity of a comprehensive, independent review.
“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 said in an interview
He further added that: ” 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.”
Source: Citinewsroom