We must all help strengthen our local banks

THE banking space in the country has not been easy, especially for our local banks, which are working very hard to retain their loyal and cherished customers.

ALREADY seven (7) of our local banks have collapsed.  These are UT and Capital banks, which occurred last year (2017), and following them this year are, the Sovereign, The Royal, uniBank, Construction and BEIGE banks.

THE collapse of these seven local banks has created the negative impression that our indigenous banks cannot stay in competition.

THE matter became even worse when reason(s) for the collapse of these banks were made public by the central bank—Bank of Ghana (BoG).

TO the extent that there is huge on-going panic withdrawal by many customers of local banks.

CLEARLY, consumer confidence in the operations of the remaining 13 local banks is fast waning.  A matter that must be taken seriously!

IN the view of Today, this could go from bad to worse, if some form of sensitisation is not done to allay the fears of customers of the remaining thirteen (13) local banks.

IT is true that heads of those collapsed banks are blamable for the collapse of their banks.

ESPECIALLY in the light of the fact that some were given liquidity to bail them out from their distress situation, but ended up misusing such a support.

IT is against this backdrop that we on Today are in support of a suggestion by management consultant and retired Board Chairman of Standard Chartered Bank Ghana, Dr Ishmael Yamson, that the discourse on the bank failures should move from ownership to governance.

ACCORDING to him, the impression out there that all our local banks are not doing well is an erroneous one.  He added that there is evidence that, some of our local banks are doing very well.

WE should move away from the narrative of local banks against foreign banks because it won’t help us. We should be talking about well-governed banks and if our local banks fall within the poorly governed banks, then we take action and make them aware that this is not how to run successful banks,” he urged.

WHILE calling for a shift in the narrative, it is imperative that those still in competition takes urgent steps to retain their customers and equally avoid the fate suffered by the collapsed banks.

 

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