CBG is worse than the five collapsed banks – Adongo

Member of Parliament for Bolgatanga Central, Isaac Adongo, has said the newly formed Consolidated Bank of Ghana (CBG) has worse liquidity challenges than the five banks that were merged to create it.

According to him after the Bank of Ghana merged the five defunct banks to form CBG, the new entity has failed to come out with policies that will restore confidence in the banking sector.

“Unfortunately over the weeks I have not heard the governor of the Central Bank Governor come to spell out any policy measure that will restore confidence apart from saying your money is safe, how that money can be safe?”

The Legislator said at a public forum organised by Progressive Alliance Media Communications (PAMC) on the banking crisis.

“Consolidated Bank Ghana is worst in liquidity than the five bank put together, Ken Ofori Attah is just buying time,” he added.

Isaac Adongo also added that “there is a sudden emergence of Pharisees and Judases in our financial system who are parading as advisors and transaction advisors. He said bank owners and shareholder are Pharisees and spies for Finance Minister Ofori-Atta and governor of the Bank of Ghana Ernest Addison and must be avoided when approached by these individuals.

In August 2018, the central bank revoked the licenses of five banks in the country and merged them into The Consolidated Bank Limited.

The five banks consist of The Royal Bank, Beige Bank, Sovereign Bank Limited, Construction Bank and uniBank Ghana Limited. Dr Ernest Addison, BoG Governor disclosed that the merging of the banks was due to the failure by the banks to overcome financial plights which were worsening and also claimed some affected banks procured their operational licenses through dubious means.

This step by the governor of the Bank of Ghana has generated a lot of debate by both the opposition party and financial analysts in the country.

Meanwhile, some financial analysts say some of the banks could have been saved instead of collapsing them into the Consolidated Bank.

Emmanuel Akrong, a Ghanaian financial consultant based in Canada, says the Construction Bank and Sovereign Bank could have been saved.

He has called for an independent probe into the collapse of the five indigenous banks. Such a probe, he maintains, will settle the issue and safeguard the banking sector because so far the central bank's side of the story has been heard.