Publish full list of debtors - STRANEK writes to Bank of Ghana

Policy think tank, Strategic Thinkers Network (STRANEK), has petitioned the Bank of Ghana requesting the publication of individual debtors owing GHC1.2 billion which amount has been written off as Non-Performing Loans (NPLs) on the books of banks in the country.

STRANEK in its letter signed by Nii Tetteh Tetteh said, the situation affected genuine people from acquiring loans.

"As you are aware, such write-offs lead to higher prices of loans for genuine lenders and affect the general credit environment. It is for these reasons that we call on you as the Regulator to unveil the entities and individuals behind these loans, and either enhance or enforce regulations to protect the assets of banks in the country."

Read below the full letter

The Governor, Bank of Ghana, One Thorpe Road, P.O Box GP 2674, Accra-Ghana. 03.10.2018

Dear Sir, P

PUBLISH FULL LIST OF DEBTORS OWING GHS1.2 BILLION

We hereby kindly request you to publish a detailed list of debtors owing GHS1.2 billion which amount has been written off as Non-Performing Loans (NPLs) on the books of banks in the country.

(Ref: citibusinessnews.com September 25, 2018) We are of the view that It is not enough to write off such debts without imposing measures to curtail their recurrence. We believe that publishing a detailed list of the debtors will expose such persons to public scrutiny and act as a deterrent.

As you are aware, such write-offs lead to higher prices of loans for genuine lenders and affect the general credit environment.

It is for these reasons that we call on you as the Regulator to unveil the entities and individuals behind these loans, and either enhance or enforce regulations to protect the assets of banks in the country.

We suggest that the Bank of Ghana works hand-in-hand with credit reference bureaus to ensure that persons behind these non-performing loans are barred from accessing credit facilities within our financial eco-system for at least five (5) years.

The Bank of Ghana must also review the processes that lead to the creation of such non-performing loans and sanction, not just banks, but the credit risk analysts and managers who facilitate the creation of such assets.

It is not enough for credit risk managers to say decisions surrounding certain transactions were exclusively made by the board of a bank and absolve themselves from blame.

They must under all such circumstances express their expert opinions to the boards of those banks and copy the Regulator because they, as credit gatekeepers, owe not only to their boards and shareholders the service of protecting their entities, but to the financial system, safe and affordable credit facilities.

They cannot and should not be allowed to operate, condone or promote environments that increase the exposure of banks to the risk of loss.

They must be saddled with the resultant effects of total credit risk exposures of their banks and sanctioned not just for their commissions but the lack thereof and in grave circumstances where they collude with other persons to create NPLs.

We take this opportunity to remind you that it is to the interest of the nation to extend credit reference bureau activities to mobile money services.

Signed.

Nii Tettey Tetteh

Executive Director