"Wonder Banks" given temporary reprieve

The Cabinet has overruled the directive issued by the Bank of Ghana (BoG) which ordered the immediate cessation of business by the "wonder banks" by asking the BoG to give the three non-banking, institutions - Pyram, Resource 500 and Christian Benefit Business Centre - a two-month grace period to regularize their operations to be in conformity to existing laws.

A press release from the Ministry of Information, said the decision was to prevent the affected institutions from using the stoppage order by the Bank of Ghana as a pretext not to fulfil their obligations to their clients. The release said at its meeting, the Cabinet reviewed the positions taken by the Ministry of Finance, on one hand, and Bank of Ghana, on the other hand, regarding the operations of the three institutions.

It said the Cabinet was of the view that the safety of the moneys paid by depositors should be of paramount concern. Cabinet also noted that the levels of interest being offered by the non-banking institutions as concerned were unsustainable in the long-term.