Director of ISSER, Professor Peter Quartey
The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has cautioned the government and the Bank of Ghana (BoG) against hastily reinstating licenses for local banks affected by the financial sector cleanup.
According to him, a rushed process could destabilize the banking sector and undermine confidence in the economy.
Speaking in an interview with Citi Business News, Prof. Quartey called for caution, stating, “We should tread carefully. Reversing the Central Bank’s decisions too quickly could set a dangerous precedent. If anyone disagrees with the decision, they should challenge it in court.”
His comments come amid growing debate over the reinstatement of revoked bank licenses, particularly following the appointment of Dr. Johnson Asiama as the new Governor of the Bank of Ghana.
Prominent figures such as Dr. Papa Kwesi Nduom, founder of GN Bank, and Seidu Agongo, majority shareholder of Heritage Bank, have consistently argued that their banks’ closures were unjust.
However, former BoG Governor Dr. Ernest Addison, before his early retirement, firmly opposed reinstating the revoked licenses.
With foreign entities now controlling two-thirds of Ghana’s 23 commercial banks, concerns over the decline in local ownership within the financial sector have intensified.
Prof. Quartey stressed the importance of due diligence, stating, “We’ve heard calls for further investigation. Let’s not rush to reinstate individuals who may have caused financial losses to the state.”
The Bank of Ghana has repeatedly urged market participants to comply fully with regulatory requirements, emphasizing that adherence to guidelines is crucial for enhancing transparency and mitigating risks in the financial sector.
ID/MA
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