Local banks to slash more than 5,000 jobs as confidence drops

Indigenous banks are likely to be laying off staff shortly to meet the Central Bank’s GHC400million minimum capital requirement threshold.

Consumer confidence in indigenous banks has dipped drastically as depositors have been seen moving their investments and savings to foreign-owned banks.

As a resolve of staying afloat in the financial sector, several local banks have resorted to measures such as suspending expansion plans and cutting down staff numbers to control costs.

Reports say BEIGE BANK, as of June 2018, has laid off over 500 of its staff as part of measures to restructure the company in anticipation of current changes within the industry.

A number of indigenous banks have also began to mull over mergers after being badly hit by the BoG’s new policy regime.

At least three local banks including Premium bank, GN Bank and Sahel Sahara have agreed to merge, although the deal is yet to be approved by the Central Bank which has received the bank’s proposal to merge.

If approved by the Central bank, it’ll be the first bank leveraging on merger to survive the BoG capital requirement directive.

Meanwhile, the Spokesperson for the Association of Indigenous banks, Abu Issah Monney has said the indigenous banks want an extension of the December deadline to enable them put their house in order to meet the BoG directive.