By Classfmonline.com on 2019-01-13 08:26:17
The government has been accused of unfairness in its selection of banks for a bailout after they failed to raise the new GHS400 million minimum capital requirement...
The government has been accused of unfairness in its selection of banks for a bailout after they failed to raise the new GHS400 million minimum capital requirement.
According to banking consultant Richmond Atuahene, at least, one of the five banks selected for the GHS2 billion bailout via the Ghana Amalgamated Trust (GAT), does not meet the criteria set by President Nana Akufo-Addo for the rescue of struggling local banks.
He quoted the president as saying only well-managed local banks will be supported as Ghana’s financial service sector undergoes reforms.
The beneficiary banks, Agricultural Development Bank (ADB), National Investment Bank (NIB), OmniBank Ghana Limited/ Sahel Sahara Ghana (OmniBank / BSIC), Universal Merchant Bank (UMB) and Prudential Bank are on course to receiving top-ups after missing the 31 December 2018 deadline for raising the GHS400 million.
According to Mr Atuahene, the state-owned NIB, has for the past three years failed to present audited accounts, which is against good corporate governance.
“Is it fair to the others?” he questioned on Newsfile and claimed that NIB had questionable books, thus, requiring the appointment of an advisor.
“By law, once you appoint an advisor, it means there is something in there that had to be looked at by an independent advisor”, he told host Samson Lardy Anyenini.
Mr Atuahene was emphatic that the support for NIB will not change the fortunes of the struggling bank because NIB was once bailed out by the Mills government to the tune of GHS120m but to no avail.
He also expressed surprise at the government’s posture in shying away from describing the support as a bailout. The banking consultant said any government support to a financial institution is a bailout.
“It is a matter of semantics”, he said.
The selected banks are expected to receive a total of GHS2 billion in financial support for capitalisation. Already, the government has pumped GHS11.56 billion in consolidating nine banks whose licences have been withdrawn. This figure amounts to 3.5% of Ghana’s GDP, the expert said.
Spending an extra GHS2bn to support five more banks brings to GHS13.56bn the total amount of money the government has pumped into the banking sector reforms.
New tariffs Feb. 1 – PURC
Menzgold not liable for our $51m loss – Horizon Royal Diamonds
Tema Port Public Affairs boss stabbed to death
Menzgold CEO, NAM1 arrested in Dubai
Challenge BoG if you feel hard done-by – Ace to Heritage Bank
NIB qualification for bailout despite 3-yr unaudited account questioned
Heritage Bank to be wound down as quickly as possible
PMMC MD Opare Hammond dead
Leave a reply
your email address will not be published
Australian Open 2019: Serena Williams cruises into second round
By Classfmonline.com on 2019-01-15 06:53:54
New tariffs Feb. 1 – PURC
By Classfmonline.com on 2019-01-15 08:41:54
Akufo-Addo "so much interested in resolving" NAM1 saga – Dep. AG
By Classfmonline.com on 2019-01-15 07:54:25
'Aquaman' is the first DC Extended Universe movie to make $1 billion
By Classfmonline.com on 2019-01-15 07:22:47
LG could bring rollable display tech to smartphones
By Classfmonline.com on 2019-01-14 08:02:50
Bawumia hosts TAMASCO 1980-year group
By Classfmonline.com on 2019-01-14 09:17:51
No.147 Roman Ridge,
Accra - Ghana.
Subscribe to our mailing list
We would never send you spam