Professor John Gartchie Gatsi, Dean of the University of Cape Coast (UCC) Business School, has issued a pressing appeal to Dr. Johnson Pandit Asiama, the newly appointed Governor of the Bank of Ghana (BoG), to provide compensation to the owners of collapsed indigenous banks. Apexnewsgh reports
This move, Prof. Gatsi believes, would not only heal the wounds of affected bank owners but also restore investor confidence and promote fairness in the banking sector.
Prof. Gatsi emphasized that potential investors need assurance that their businesses will not be arbitrarily shut down in the future. He warned that if the issue is not addressed properly, it could create the impression that individuals who invest in banking, insurance, and microfinance could lose their assets unfairly at the behest of the BoG.
To rectify the situation, Prof. Gatsi suggested the establishment of a National Reconciliation Commission-style platform, where victims could receive a formal apology for their losses. He also proposed that bank owners who wish to resume operations should have their licenses restored, while those who no longer wish to continue in the industry should receive full compensation.
Prof. Gatsi accused the BoG of being inconsiderate in its banking sector cleanup exercise, highlighting that some bank owners had taken measures to address their liquidity challenges, yet their institutions were still collapsed. He also noted that a significant portion of Non-Performing Loans (NPLs) recorded in the books of these banks was due to government agencies owing the banks’ clients, further complicating their financial situation.
Despite his concerns, Prof. Gatsi commended Dr. Asiama for his pledge to restore confidence in Ghana’s banking sector. He urged the new Governor to take bold steps to rectify past injustices and ensure fairness in the financial sector, thereby fostering a stable and investor-friendly banking environment.
Source: Apexnewsgh.com
