By: Kenneth Appiah Bani
Bank of Ghana Governor, Dr. Ernest Addison, has made it clear that licenses revoked from banks during the 2017-2019 financial sector reforms will not be reinstated as long as he’s in office. In a recent TV interview with JoyNews, Dr. Addison emphasized that the decision to revoke licenses was made after thorough reviews, which revealed risky investments and mismanagement of depositor funds.
Dr. Addison stressed that shareholders of these banks treated depositors’ money as their own, using it for personal businesses or investments that weren’t liquid enough to meet depositors’ needs. The central bank revoked licenses from nine universal banks, 347 microfinance companies, and other financial institutions during the reform period.
The Governor highlighted the gravity of mismanagement in these institutions, noting that it breached the principles of banking. He emphasized that the Bank of Ghana’s primary mandate is to protect depositors and maintain financial stability. Dr. Addison also warned that reinstating revoked licenses would undermine the sector’s stability.
It’s worth noting that Dr. Addison’s stance is in line with the Bank of Ghana’s efforts to sanitize the financial sector and ensure that banking licenses are taken seriously. The central bank has implemented various reforms, including the Consolidated Bank Ghana (CBG), to ensure continuity of banking services.
