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Banking sector is safe, sound despite recent challenges – BoG Governor assures | Ghana Business & Finance Magazine

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison has assured depositors that the Banking sector is safe and sound and there is no cause for worry. 

Dr Ernest Yedu Addison at a Press conference in Accra on Tuesday said despite the latest developments in the banking sector, the challenges in the sector have not gotten to a level which can be described as threatening.

“If you look at the banking system, we think that it is well-capitalised, we think that it is still profitable, we think that it is still liquid.

“That does not mean that there are no pockets of weaknesses or vulnerabilities. These are average numbers so within the broad averages you would also have hidden a few points that may be weak,” he added.

According to him, his outfit is considering whether or not to deal with officials that supervised current challenges in the banking sector.

Dr Addison said, “can we hold the supervision staff who were in charge culpable for some of the things that happened in the industry?

“I think that’s an important question which we are also asking ourselves and would have to be addressed at some point as all of these issues are resolved.”

He, however, indicated that some restructuring is currently on-going at the banking supervision to deal with some of the governance issues at Bank of Ghana.

With regards to the policy rate, Dr Addison says the action was influenced by positive economic outlook.

uniBank was given the required notice before management takeover

The Bank of Ghana has maintained Unibank was given enough notice before it took over the management of the institution.

This is despite initial claims by Unibank that it was not given the required notice before the action, with even questions about the procedures as well.

But the Governor said, “I think we went to a great length to give you the details in a press release where we started off with the 4.5 percent capital sometime in April or May.

“We thought that we had brought them all the way up to 7.7 percent as of August and then by the time we went back to relook at the books again in October we were heading towards negative territory.”

“By December it was completely negative 24 and after that, we have not had any returns from the bank. What sort of notice do you expect us to give them given this type of history? We have been engaging for nearly eight months.” Dr Addison quizzed.

Source: Joy Business

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