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You Are Fueling Systemic Risk & Confidence Issues In The Banking Sector

botchway May 29, 2018

NDC’s Adongo Writes To BoG:

I wish to draw your attention to the fact that the conduct and inactions of the Bank of Ghana (BoG) and your leadership of the regulatory body are fuelling heightened systemic risks and worsening confidence in the banking sector of Ghana and to seek your immediate steps to address these challenges. The following are a few that need urgent non-politically induced actions to address:

  1. GCB Bank has not filed its audited financial statements with the Bank of Ghana in accordance with section 90(2) of the Banks and Special Deposit Institutions Act 2016, Act 930. It is strange that the BOG has remained loudly silent in the face of this breach and has not done anything to assure the market of steps taken to avert any negative consequences of this breach on the broader banking sector given the size and stature of GCB Bank in the financial markets of Ghana.

I am aware that GCB Bank and not the Securities and Exchange Commission and the BoG issued a statement somewhere in April 2018 claiming to have obtained approval from SEC to file its audited financial statements at the end of May. This is clearly unacceptable as the market expect the regulators to give such assurances and not the one in breach of the law. To date no statement has been made by the Bank of Ghana to clear the air and give confidence to the market. This singular silence on your part has led to the following;

– Heightened anxiety among industry players in the face of lack of information regarding the impact of the takeover of UT/Capital Bank on GCB Bank, especially its liquidity situation and quality of its assets

– after the takeover of the selected assets and liabilities of the resolved banks.

– Fears in the banking sector following requests by GCB to the Bank of Ghana for expensive liquidity support after taking over the resolved banks leading to significant outflows from its cheaper liquid assets to fund deposits of UT/Capital Banks.


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