BoG revises licensing procedures for banks – Governor

Small business News of Sunday, 19 January 2020


The Bank of GhanaThe Bank of Ghana

The Lender of Ghana (Bog) has revamped its buildings and procedures for with more complete because of diligence and cash verification processes, adhering to the clen up physical exercise that was carried out which resulted in the collapse of some nine domestic professional , Dr Ernest Addison, of the Lavatory, has mentioned.

He additional that the Bathroom launched an enhanced procedure for making new regulations which entail a much more structured stakeholder session.

He emphasised that the recent start of the Ghana Deposit Security Plan is another characteristic of a a lot more resilient monetary protection internet for Ghana.

The Ghana Deposit Security Corporation (GDPC) is now entirely operational, with all banks, financial savings, and loans organizations, finance homes, microfinance corporations, and rural and group banking companies, at the moment admitted as users of the scheme.

He said these when addressing contributors at the New Yr College and Conference organised by the University of Ghana.

Dr Addison additional said that : “To some extent, the restoration endeavours have been hampered by frivolous authorized difficulties mounted by some complicit individuals intending to frustrate the Receivers.

“These strategies ought not to be countenanced by the courts, as they do not inure to the profit of the serious victims of these numerous failures, the taxpayers, that have experienced to fork out for the cost of these failures, and have to not be remaining keeping the raw conclusion of the adhere in the situation.”

The details of suspicious transactions, misappropriation of resources, wrong accounting and misreporting have been referred to the criminal investigative authorities and the Legal professional General.

The Governor stated: “We count on that criminal behaviour, after proven, will be prosecuted and the perpetrators introduced to e book. We will keep on to urge the law enforcement companies and legal investigative authorities to expedite their investigations into various suspicious transactions introduced to their attention by the Receivers to facilitate prosecutions that may be required to be certain that justice is served.”

He reiterated that the central bank has carried out a thorough and in depth interior investigation into possible complicity of its employees, adding that the administration has sent crystal clear signals to the staff about the need to have to guarantee discipline and professionalism in line with the bank’s new Code of Perform that was launched in May 2019 together with the establishment of the Ethics and Interior Investigations Business office.

He observed that the revocation of the 420 licences, in total, was a distressing but vital work out to sanitise the economical process whilst making the environment for stronger and properly-run establishments to prosper and enjoy their anticipated position of supporting organizations of all dimensions and homes.

In the situation of the unsuccessful financial institutions, he mentioned: “One matter was obvious and that is: banking companies were set up right away by small or no money and by folks with minor or no expertise in managing thriving banks. What is much more, all the resolved banks have been managed or managed by shareholders with entire disregard for prudential norms and ideal procedures in company governance and the management of banking institutions.”

“It became clear”, the Governor pointed out, “That these establishments were set up to use depositors’ cash to finance other enterprises of shareholders or other associated or related companies. In the course of action, oligarchies were being shaped involving many groups of providers under the regulate of popular shareholding by a number of politically-related folks whose romance with political authorities gave them a false feeling of safety from the legislation and dared to do the unthinkable at the expenditure of depositors whose money were being used to continue to keep these teams heading.”

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