Former Finance Minister, Seth Terkper, has charged regulatory authorities to ensure that banks do not fold up in the future as happened in the past one year.
“I will say let’s prevent it from happening again,” Mr Terkper said on Tuesday, 4 September 2018.
The Bank of Ghana (BoG), in August 2017, revoked the licences of UT Bank and Capital Bank, and was subsequently taken over by GCB Bank, after having been declared “irredeemably insolvent”.
Also, the recently established Consolidated Bank Ghana Limited was morphed by fusing uniBank, The Construction Bank, The Royal Bank, The Beige Bank and Sovereign Bank together.
Mr Terkper, who was commenting on the recent developments, underscored the importance of instituting measures to prevent a repeat of the crisis in the financial sector, adding: “We will lament if we don’t take the necessary regulatory corrections and necessary statutory corrections with oversight by parliament…”
Meanwhile over 2,000 security men working for the now-defunct five local banks have been laid off, as part of a restructuring process.
The security men who were under ACS security services limited, were fired after management of the bank revoked the contract of the security firm.
In the case of the now-defunct The Beige Bank, ACS Security Services Limited deployed four security guards to each of the over 90 branches with two operating in the day and the others for night.
A document by Consolidated Bank Ghana Limited revealed that Vizico Security Company Limited has now been engaged for that same purpose.
Some 1,700 staff of the banks are also expected to be affected in the retrenchment exercise.
Government is spending in excess of GHS8 billion in rescuing the defunct banks.
Finance Minister Ken Ofori-Atta said recently that the actions of the BoG saved over 50,000 jobs.
Story: Gottlieb BAAKO
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