Business News of Mon, 6 Aug 20188
BoG to publish names of banned Directors of collapsed banks
The Bank of Ghana has served notice that it will soon publish names of Directors of collapsed banks who have been banned from playing any role in Ghana’s financial sector.
The Bank of Ghana has come under heavy criticism for treating the officials of the troubled banks with kids gloves by not holding them to account.
Economist, Prof. John Gatsi of the University of Cape Coast for instance holds the view that the Bank of Ghana is complicit in the collapse of the five banks hence demanded total overhaul.
Second Deputy Governor of the Bank of Ghana Elsie Awadzi speaking on News File revealed that the Central Bank has already removed Heads of Departments whose inaction has led to the collapse of the banks.
“A lot of changes have been made, the heads of all relevant departments for example were moved for more accountability precisely because we recognized that there were lapses in the past. We’ll be coming up with a list of persons who are no longer fit and proper to engage in any business in the financial sector. We would also ensure that any civil action that can be taken by the receiver of the failed banks will be pursued.”
The Bank of Ghana last week revoked the licenses of five universal banks, namely, Royal Bank, Construction Bank, Sovereign Bank, Unibank and BEIGE Bank. According to the central bank, the action was taken due to the inability of some of the banks to meet existing minimum capital requirement.
Some of the troubled banks also faced liquidity issues while others obtained their licences through dubious means.