International rating agency, Moody’s says despite the cleanup in Ghana’s banking sector bringing universal banks to 23, challenges still persists.
The rating agency held that undertaking the cleanup does not translate automatically to a strong bank performance for all the banks.
Meanwhile Dr. Richmond Atuahene has warned against using pension funds to shore up undercapitalised banks, NIB and ADB
He submitted if government reckons the two banks are too integral to be allowed to die, there must be an overhaul in the two state banks including effecting change in the organisational structure and letting the managers go.
“NIB used to be one of the best delivering banks in the region but appointment of political persons to run affairs without the necessary skill and experience all helped cripple the investment bank,” he noted.
Eddie Acquaye of the Civil and Local Government Staff Association of Ghana (CLOSAG) said consultation was needed with folks whose fund is being held in trust before such move could be undertaken.
He stated with contributors dying from shock when handed their pension fund at SSNIT officers because of the meagre sums and having worked tirelessly for the tier 3 system, using pension funds to bail banks cannot be encouraged.
Government announced a special programme to rescue five indigenous commercial banks that failed to reach the BoG’s minimum capital requirement of GHc400 million, calling it the Ghana Amalgamated Trust (GAT) which is to support solvent and well-run indigenous banks but had no funds to mobilise.
Its beneficiaries include Agricultural Development Bank (ADB), National Investment Bank (NIB), OmniBank Ghana Limited / Bank Sahel Sahara Ghana (OmniBank / BSIC), Universal Merchant Bank (UMB) and Prudential Bank.
By Michael Eli Dokosi/goldstreetbusiness.com