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0 The government and the Bank of Ghana (BoG) have been urged to proceed with caution in considering the reinstatement of licenses for local banks affected by the financial sector cleanup.
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has warned that a rushed reinstatement process could destabilize the banking sector and weaken confidence in the economy.
“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,” he stated in an interview with Citi Business News.
The debate over restoring licenses has gained traction following the appointment of Dr. Johnson Asiama as the new Governor of the Bank of Ghana.
Dr. Papa Kwesi Nduom, founder of GN Bank, has consistently insisted that his bank’s closure was unjust, and Seidu Agongo, the majority shareholder of Heritage Bank, has also raised similar concerns.
However, before his early retirement, former BoG Governor Dr. Ernest Addison firmly opposed reinstating the revoked licenses.
With foreign entities now controlling two-thirds of Ghana’s 23 commercial banks, concerns over dwindling local ownership in the financial sector continue to grow.
Despite these concerns, Professor Quartey believes that due diligence is necessary before making any decisions.
“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,” he cautioned.
The central bank has consistently reminded market participants to fully comply with regulatory requirements, emphasizing that adherence to guidelines would enhance transparency and mitigate risks in the financial sector.
The post Don’t rush bank license reinstatement – Prof. Peter Quartey warns BoG amid local ownership concerns first appeared on 3News.
