BoG's reforms "shrouded in mystery" – Sly

The Bank of Ghana was not transparent in its banking reforms, Mr Sylvester Mensah, an aspiring flag bearer of the National Democratic Congress (NDC) has said...


The Bank of Ghana was not transparent in its banking reforms, Mr Sylvester Mensah, an aspiring flag bearer of the National Democratic Congress (NDC) has said.

The former CEO of the National Health Insurance Authority (NHIA) expressed reservations about the opacity with which the BoG carried out the reforms.

The BoG morphed seven local banks into one – the all-new state-owned Consolidated Bank Ghana (CBG), during its reforms. They include The Beige Bank, Sovereign Bank, The Royal Bank, uniBank, Premium Bank, Heritage Bank and The Construction Bank.

Also, two other local banks – UT Bank and Capital Bank – were given to the state-owned GCB Bank.

At the end of the reforms, 23 banks met the central bank’s GHS400 million new minimum capital requirement, which used to be GHS120 million.

Mr Mensah told Kwabena Prah Jnr (The Don) on Ghana Yensom on Accra 100.5FM on Thursday, 14 February 2019 that given that there was so much suspicion and mistrust regarding the exercise, the central bank should have been more transparent in publishing the indicators of all the banks so the public can know which were doing well and which ones were not.

“I think that the Bank of Ghana has not been transparent in all these. Under circumstances like this, when there is so much political suspicion, it is important for some level of transparency.

“Is it the case that we still have some banks who are performing worse than these banks who have suffered under the supposed shake-up? If that is the case, why is it so? If that is not the case, how do we know?”

He added: “When you are looking at the financial institutions, there are various performance indicators. We need to look at the capital adequacy ratio across the board, we need to look at the ratio of risk assets to total assets for all the banks across the country, we need to look at the liquidity ratio. These are key indicators.

“The time has come for the Bank of Ghana to possibly publish these indicators for all the banks so that Ghanaians will know exactly which banks they are dealing with. Everything is shrouded in some mystery and there are so many conspiracy theories around this. It doesn’t bode well for the financial sector.”

Source: Ghana/ClassFMonline.com/91.3FM



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