By: Franklin ASARE-DONKOH
Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey, has cautioned the President John Mahama-led government to hasten slowly in considering the reinstatement of licenses for local banks affected by the banking sector cleanup.
According to the Director of ISSER, if the reinstatement process is not carefully analysed to iron out the rough edges before a decision is taken, it could destabilise the sector and erode confidence in the broader economy.
The push to restore licenses for some collapsed banks has gained momentum following Dr. Johnson Asiama’s appointment as the new Governor of the Bank of Ghana.
The affected owners and stakeholders of the banks whose licenses were revoked, like the founder of GN Bank, Dr. Papa Kwesi Nduom, and Mr. Seidu Agongo, the majority shareholder of the defunct Heritage Bank, have recently been in the public space advocating for the reinstatement of their licenses.
From day one of the revocation of GN Bank’s license, the founder of GN Bank maintained that his bank’s closure was unjust and has since soldiered on to see the restoration of the bank’s license.
Commenting on the calls by the owners of the defunct banks in an interview with Accra-based Citi FM, Prof. Quartey warned the government against making hasty decisions that could affect the banking space as well as the Ghanaian economy.
What the government, especially the leadership of the Central Bank, the Bank of Ghana (BoG), needs to do now, according to the Director of ISSER, is to carry out a thorough, independent review of the status of the affected banks and other matters before any action is taken.
“I think we should tread cautiously. You don’t want to set such a precedent where the Central Bank takes a decision and then it is reversed.
If anybody has issues with that decision, that person can challenge it in court.
We have listened to one side which calls for further investigation. Let us not be in a haste to reinstate people who perhaps have caused financial loss to the state,” Prof. Quartey insisted.
