DECISION by the Bank of Ghana (BoG) to resolve insolvent banking financial institutions completely has nothing to do with political gimmicks, some officials at the Supervision Department of Bank of Ghana, have stated.
According to them, the decision by the BoG to revoke the licenses of the insolvent banking financial institutions was executed in accordance with section 123 Act 930 of Banking Act.
“It is very difficult situation to arrive on the decision to resolve insolvent banks.The central bank cannot resolved solvent banks becauae the owners of the banks were belong oppositions political parties. It does not happen that way,” they stressed.
They made this known when they were making power point presentation at a two day workshop on the banking sector reforms in Ghana organised by Ecobank Ghana for members of Journalists for Business Advocacy (JBA) in Accra.
The programme, on the theme, “Understanding of Financial Sector Reforms,” was to develop the capacity of journalists to be able to report critically on issues relating to the current ongoing financial sector reforms.
Representatives of the BoG — educated participants on monetary policy practice, current monetary framework, banking sector reforms to promoting financial stability and regulating the banking industry.
They outlined the causes of the crisis that rocked the banking institutions are cash and asset supression, non existence paid up capital, non-existence investment in SEC regulated institutions, creative accountings practices thereby misrepresenting bank’s financial condition, insider dealing/related party transactions in excess of statutory limit, weak board oversight and override of internal controls, non-compliance with the BoG provisioning norms or failure to implement BoG on-site examination recommendations.
They stated that It should not be an objective of banking supervision to prevent bank failure.
Source Myafricatoday.net Yaovi Azietrogah AWLESU