Aspiring National Chairman of the Progressive People's Party (PPP) Nana Ofori Owusu has lambasted the Akufo-Addo government over demands that banks should raise a whopping amount of GHC 400 million as a new capital requirement.
The Central Bank has asked the banks to raise the capital to be kept in the reserve of the Bank of Ghana in order to bail out the banks when they're at the verge of folding up.
Addressing the issue on Peace FM's Kokrokoo, Nana Ofori Owusu told host Nana Yaw Kesseh that the Central Bank's directive is "unfair" and an "attempt to burden indigenous banks" in the country.
He asked the government to review the directive to ensure that the interest and welfare of indigenous banks come first before foreign banks which, he believes, have the support of their countries to thrive in this nation.
“Government must review and have a listening ear…How many indigenous banks can raise this Ghc 400 million capitalization? It’s not fair. It’s not practical”.
Nana Ofori Owusu stated emphatically that "Ghana must protect its own. How can you have a country that nationalism in terms of protecting your own people, your own assets; it doesn’t take priority over anything else? How can you do that…There must be clauses. Other countries put clauses to ensure that their indigenous banks are protected ahead of the foreign banks…How can we develop as a nation, as a people, we’re not thinking about ourselves, self-preservation first and we think about others? It’s sickening. We must get away from this type of mindset. They must give those indigenous banks that don’t have the opportunity and need time to raise the money; you must give them the time”.
Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana
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Mr Ofori Owusu, listen to me. The answer is not government protecting inefficient banks. It does not help at all. The answer is these banks merging to strengthen their competitive position.
This noisy chap is just irritating. Very soon he will advocate for protection of Ghanaian armed robbers. How do you protect wrong? Is this what he and his Ndoum hoping to do? nons3nse!
if the bank of Ghana employed proper people who did their work well, there can be 100 banks in Ghana and everything will STILL WORK FINE!!
Local banks should be allowed to operate, There must be rigourous checks on them. That is what Bank of Ghana has to do. We SHOULD ENCOURAGE banking so that more people become part of the FORMAL SECTOR
The Bank of Ghana's watch dogs or indeed auditors must not be sleeping on the job. In effect we expect them to be on the toes of the indigenous banks on constant basis to ensure that they do not under-trade to get their knickers in a twist. As much as we appreciate the Government's position to protect the people our indigenous banking institutions also need protection from Government by actively monitoring their operations so they do not go under. Mr Ofori Owusu is right to caution our Government to back down on the very high demand on the banking institutions. to save them from collapsing.
Nana Ofori Owusu if you feel sickened by the Central Banking doing the right thing to protect depositors' money and strengthen the banks whether local or foreign then you must be sick. Stop this cheap politics.
AS A CUSTOMER, THE SAFETY OF MY DEPOSITS IS MOST IMPORTANT TO ME THAN WHETHER IT IS AN INTERNATIONAL OF INDIGENOUS BANK.THE LOCAL BANKS SHOULD DEMONSTRATE THEIR READY TO COMPETE IN A GLOBALIZED ECONOMY AND STOP THIS POPULIST MANTRA OF "INDIGENISATION".IT IS RECKLESSNESS AN GREED THAT BROUGHT MOST LOCAL BANKS DOWN AND THEY MUST SIT UP. THEY SHOULD MERGE IF THEY CANNOT RAISE THE 400M. GHC400M IS JUST $96M. IN 2012, THE MINIMUM CAPITAL WAS $100M AND THEY ALL MET IT. HOW CAN THEY NOT MEET $96M in 2018?
for me it's about discipline. how have those at the helm of affairs in these local banks conducted themselves and the affairs of the banks? it is their indiscipline, greed and poor corporate governance that brought the banks down. it is even said that one of the directors of the recently delicensed banks had the habit of actually asking that he be given money directly from the vault! seriously???
Local banks should rather merge and stop these kiosk banking.