Bailout struggling local Banks – Nduom to BoG

The Owner and Founder of GN Bank, Dr. Kwesi Nduom has asked the Bank of Ghana to bailout struggling financial firms in the country.

The call comes in the wake of the collapse of some seven banks within a year. The development has led to what has been described as panic withdrawal in the financial landscape.

One of the hardest hit by the panic withdrawal is GN Bank. Dr Nduom made a similar call after embarking on a nationwide tour to allay fears of customers against panic withdrawals.

According to him, similar interventions were done by the US government to save some struggling banks adding that similar interventions must be done by the Central Bank in Ghana.

In an interview, Dr. Nduom said “we don’t have to reinvent the wheel, the Americans did in 2007, 2008 with a programme they called TARP, which provided 700 billion dollars to insurance companies banks and it wasn’t free money…this was done to save American financial institutions.

“Three years after it was implemented the monies came back and the government even earned some interest from this investment…the financial sector has deeper problems that have to be financed as long term money.”

Speaking on the Business Edition, Financial Economist Collins Appiah warned failure to bail out struggling firms will spell doom for the financial sector.