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STEP TAKEN BY BANK OF GHANA IS IN THE RIGHT DIRECTION- UCC LECTURER

A Business Commerce (B.COM) Lecturer at the University Of Cape Coast (UCC), Mr. Seyram Kawor has uttered his opinion regarding the amalgamation of five banks by the Bank of Ghana, stating “It’s a step in the right direction”.

Following a recent press release of the Bank of Ghana granting a universal banking license to the Consolidated Bank Ghana Limited, established by the Government.
The incorporated banks include the Unibank Gh Ltd, The Royal Bank Ltd, Beige Bank Ltd, Sovereign Bank Ltd and the Construction Bank Ltd.
In an interview with Pink FM, Mr. Kawor disclosed that, he is not surprised by the action taken by Bank of Ghana (BoG).
According to him, most banks are anguished and hence, commended BoG for merging the five banks. He included that, the incorporation of these banks, will help safeguard the investments and savings that were made in these merged banks, which were struggling.
The B.COM lecturer furthered by pointing out that, BoG should keep an eye on banks scheduled on the Ghana Stock-Exchange. Mr. Kawor further suggested that, BoG should take such similar actions to organizations also listed on the Ghana Stock-Exchange.
The Financial lecturer also advised BoG to be vigilant of financial institutions which are into document and license forgery, and recommended that such institutions should be found and dealt with.
“Owners of Unibank should have themselves to blame,” he stated. In his view, Mr. Kawor claimed BoG stated that shareholders of Unibank, including Former Finance Minister Kwabena Duffour, schemed with other entities and loaned them an amount to a sum of Ghc3.7billion “which constituted to about 75 % and over of the total assets of Unibank”.
He added that the loan given out was not done “through the approved routes”.
The B.COM lecturer made mention that, owners of most banks are Politicians and hence, operate these financial institutions politically, which does not facilitate the efficiency of the banks.
Mr. Seyram Kawor recommended banks to create a Niche to be well specialised in a particular field.
The Financial tutor advanced to the issue of Foreign Banks thriving at the expense of indigenous banks. He stated that, the failing of these local banks are not right, since, as a country, it cannot boast of having its own bank. He counselled for the Local banks to seek guidance from the international banks to help aid them.
He claimed that he is assured the Bank of Ghana will employ competent personnel to handle the dealings of the Consolidated Bank.
In his words, Mr. Kawor believed that, the starting capital of the bank, which is an amount of Ghc450million, is a good move by the Bank of Ghana, since that is a standard for any financial organisation to commence operations.

Story By: Bernice Amoakoah/Sarah Appiah/pinkfmonlinegh.com

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