BoG to hold crunch meeting with MDs of banks today

Wed, 27 Nov 2019 Source: Prime News Ghana

The Bank of Ghana, BOG will today, November 27 hold a crunch meeting with Managing Directors of commercial banks.

The meeting will focus on some proposed policies for the sector, key among them will be the decision of the BOG to reduce the salaries of the MDs and CEOs of the banks.

Also, the proposed 2% of banks primary reserve at the Bank of Ghana which will be set aside to support small businesses, Governor of the BOG, Ernest Addison has maintained that moves to let banks us part of their reserve fund small businesses should not be seen as anti-free market initiative.

"I don't know how you will characterize that, whether it's market-oriented or more direct intervention, but this is a deliberate effort by the Central Bank to support the SME lending."

He also stated that there are plans to reduce salaries of Managing Directors and Chief Executive Officers of banks in the country.

The move according to BOG it to cut down on the huge salaries of Managing Directors who are not performing to satisfaction.

"As you can see, this is a recent decision, we've looked at the operational cost of the banks, if you look at the cost of operation of the banks you will see where the inefficiencies are coming from, and we think it's about time we sit down and have a conversation to ensure that CEOs that are reporting all this high amount of ..... are not being compensated in excess in some of the results that they are achieving, let's bring some equity into the system so this is early days yet but it's an idea that we have thrown out and as part of the processes after every MPC, we have a meeting with the Ghana Association of Banks and I believe with the meeting that is on Wednesday we will go through the details of all of these with the stakeholders....."

Source: Prime News Ghana

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