By / April 10, 2018

Running to Akufo-Addo not solution – Afenyo-Markin to Local Banks CEOs

Member of Parliament foe Effutu, Lawyer Alexander Afenyo Markin has slammed CEOs of local banks for running to President Akufo…

Member of Parliament foe Effutu, Lawyer Alexander Afenyo Markin has slammed CEOs of local banks for running to President Akufo Addo to intervene in a new capital requirement by the Bank of Ghana they claim could destabilize local banks.

According to him, the move by the CEOs was wrong as the Bank of Ghana is an independent institution, lest the President’s future action is described as interference in the work of the Central Bank.

Heads of the indigenous banks on Monday met the President over the matter but the meeting reportedly ended inconclusively, with the bank managers likely to return to the presidency on Tuesday with the hope the president, Nana Akufo-Addo will soften the hearts of the officials at the Bank of Ghana to reduce the minimum capital requirement of ¢400 million.

They had prior to their meeting petitioned the president to intervene.

Even though the Ghana Association of Bankers met with the Financial Committee of Parliament on general issues affecting the banking industry, the issue of the minimum requirement came up strongly with the local bank managers seeking the committee’s intervention as well, but the committee is yet to intervene on the matter.

Per a new Bank of Ghana law, all banks are to have a new minimum capital requirement of ¢400 million before they can operate. They have up till the end of December 2018 to raise the minimum capital or risk folding up.

Before the new law, the banks had a minimum capital requirement of ¢120 million. The increase to ¢400 million represents a 233% increase. It is part of measures by the Ernest Addison led Bank of Ghana to strengthen the banking sector which has already seen some volatilities with the takeover of at least three local banks.

But commenting further on the move by the CEOs on Peace FM Tuesday, Hon. Afenyo Markin stated that the former should continue to engage the Governor of the Bank of Ghana till they have their concerns addressed.

“We’ve said we want our institutions to be effective and independent, so why go to the President instead of meeting with the Governor of the Bank of Ghana and his team.

“Even if they’ve met with the Governor and their engagement has not yielded any positive results, they should still deal with him and those in charge of that sector and leave the President alone in this matter. The Presidency is not the solution to this matter, that’s my humble view.”


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