Professor Gatsi makes case for indigenous financial institutions

Dean of the School of Business at the University of Cape Coast, Professor John Gatsi, has voiced concerns over the decline of indigenous banking and microfinance sectors, urging swift action to revive their role in the banking system.

He maintained that government’s approach to the banking and finance sector clean-up was high-handed, arguing that the institutions would not have found themselves in thier current hopeless situations, were the exercise carried out properly.

According to him, regulatory measures should rather ensure protection and the grooming of indigenous banks as opposed to collapsing them.

“I thinks we need to prioritise giving space for indigenous banks to operate, as we do for international banks. Microfinance is down significantly; and the indigenous banking sector is also down. When you go round the country, you can see that support for SMEs and other micro businesses is not forthcoming as it used to be.

“Better alternative means could have been used in addressing the sector’s challenges rather than the high-handed, selective clean-up option at the time. The sector ought to be revived,” he added.

Furthermore, he said the sector can be revived by relying on indigenous banks, which would be committed to ensuring that their monies are channelled to support the country’s indigenous businesses.

“Everything indigenous banks do is for the country, but the international banks are here to work and repatriate their monies to service the interest of stakeholders outside the country, putting pressure on the currency and the rest,” he added.

Also, he called for adequate education among the banked population as a key measure for restoring confidence in the banking sector, and averred that doing this would allow savers and investors to continue working with the banks, enabling the banks to have liquidity for a robust financial economy.

Prof. Gatsi said this in a presentation at the public lecture, organised by the Financial Forum (FinForum), held at the West Africa Centre for Crop Improvement (WACCI), University of Ghana(UG), Accra.

The maiden Public Lecture Series is a precursor of many more sessions to be held. It was on the theme ‘Ghana’s Pain Points’, highlighting the country’s mounting economic and political challenges, including issues with respect to perceived state capture.

Meanwhile, Chairman of the FinForum event, Mr. James Osabutey, in his welcome address, said many of the country’s citizens are disillusioned and apprehensive about the future because of these challenges, which are further exacerbated by what many perceive as state capture under the current government.

Highlighting what he refers to as “pain points”, he said since 2017, the nation’s workers have continued to witness and experience increases in the prices of goods and services and a decline in the value of wages and salaries, yet the government prides itself on the claim that the size of the economy has increased.

“Another critical issue is the nation’s confrontation with deeper systemic problems, such as the erosion of democratic principles, the demise of private businesses and the concentration of power among a small group of individuals, often connected by familial tie.

“As we prepare for the 2024 elections, the people of this country are faced with two main choices: either retain the current government and continuing on a path of destruction, or bring in a new government to reset the country’s direction,” he added.

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