Banking sector confidence to take decade to bounce back – Kwame Pianim

Renowned economist Kwame Pianim says it will take a decade for confidence to be restored to the banking industry, following two years of sector reforms.

The reforms saw the closure of some local banks and many other financial firms.

Speaking in an exclusive interview on TV3‘s Business Focus on Monday, December 2, Mr Pianim said although the Governor should be commended for doing a good job considering the bad situation he inherited, he believes Dr Ernest Yedu Addison could have been bolder.

“The Governor and his people inherited a very bad situation. They have done pretty well, but I think that they should have been a little bolder.

“They made people suspicious of putting their monies in the bank and it’s going to take maybe a decade for confidence to be restored back.”

He also blamed the Supervision Department of the Bank of Ghana for being complicit in most of the activities that led to the collapse of the banks.

Mr Pianim expressed dissatisfaction over the manner in which some issues like the payment of depositors were being handled and encouraged the Bank of Ghana to pay depositors by the end of December to help bring back some confidence in the industry.

The economist also wondered why some people who have been implicated as having contributed to the collapse of banks are still walking free.