Story: Atta Kwaku Boadi
Renowned businessman and Chairman of Groupe Nduom , Dr Papa Kwesi Nduom does not understand why the so-called experts always talk about recapitalization and merger anytime the country’s banking sector faces liquidity challenges when there are many other ways to handle the situation.
“Are they not aware that banks can downsize to an appropriate risk level under the active, watchful eye of the Bank of Ghana’s supervision. We don’t need to require all banks to have the same amount of “minimum capital”. An appropriately tiered system produce banks with different muscle power who can all serve the consumer well throughout the country”, the astute entrepreneur quizzed when he shared his perspective on the current banking situation in Ghana on his Facebook wall.
According to him, diligent and continuous supervision by the regulator can and should ensure that the deposits carried by banks are matched by their level of capitalization.
To this end, he advised that banking supervision should be restructured for the task at hand.
“More importantly, banking relies on customer confidence (and of course, excellent internal controls). The Bank of Ghana and the Akufo-Addo Administration must not allow the banking system to be terrorized and forced into a panic corner this time around. Examine the banks closely and regularly; offer technical assistance to those who need it; ensure the right match of deposits with capital; and provide funds to the banks that are willing and able to operate with discipline”,Dr Nduom further advised. .
He added: “Didn’t President Akufo-Addo say “sika mpe dede”?