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Thursday, May 13, 2021

Kwame Pianim criticises Bank of Ghana over Banking Sector Cleanup approach

A leading member of the governing NPP, Kwame Pianim has lashed out at the Central Bank for its approachin dealing with the banking sector cleanup.

According to the revered Economist the approach by the Central Bank to force erring banks to close shop by revoking their licenses was a wrong approach to dealing with whichever challenges may have existed at the time.

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Mr Pianim is of the view that a subtle approach of guiding such banks onto the path of recovery would have been a far more profitable exercise than the rather direct approach of shutting them down.

“I think that what happened in the past was due partly to lack of jurisdiction. With some of the ponzi schemes, it was not clear whether the Bank of Ghana or the Securities Exchange Commission was to regulate them.”

“Revoking a license is not the right way to do to these companies. The idea is to be there, guide them when they are going wrong and let them know that you’re monitoring their accounts so if they’re not paying their bills, you are going to deal with them,” he said in a webinar organised by TESAH Capital.

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