Executive Director of Revenue Mobilisation Africa, Geoffrey Kabutey Ocansey, expressed the view that the Bank of Ghana might require recapitalization similar to the collapsed banks due to mismanagement of affairs.

The economist contended that the central bank has recently exhibited poor management, resulting in losses over the past couple of years.

For the financial year ending in 2023, the BoG reported a loss of GH¢10.5 billion.

This loss was attributed to a significant increase in total interest expenses on open market operations by the Central Bank, amounting to GH¢6.7 billion during the review period.

The Bank clarified that the rise in expenses was essential to manage the economy's excess liquidity and to support the disinflation process as part of a broader macroeconomic adjustment program.

As of December 31, 2023, the Bank of Ghana and its subsidiaries had total liabilities exceeding total assets by GH¢65.36 billion.

Total operating expenses for 2023 amounted to GH¢19.2 billion, representing a significant decrease from the GH¢66.9 billion recorded in 2022.

In August of the preceding year, the BoG defended its new $250 million headquarters.

In response, Geoffrey Kabutey Ocansey highlighted that the circumstances leading to the central bank supervising the collapse of several financial institutions mirror those currently affecting them.

During an interview on Frontline on Rainbow Radio 87.5FM, he stated that one of the primary reasons for the BoG's intervention in collapsing the banks was poor governance and a breach of sector guidelines.

He cautioned that failure to address these losses could have adverse effects on the economy, potentially impacting monetary policy and endangering the central bank's independence and reputation.

“If care is not taken, the Bank of Ghana would have to be recapitalized based on the same reasons it used in collapsing the banks. The Bank of Ghana advised the government to collapse banks and other financial institutions. But when you evaluate the work of the BoG currently, you will discover that they are worse than the banks that collapsed. The bank would have to be recapitalized based on the same principles it used in the collapse of the other banks,” he told host Kwabena Agyapong.

He pointed out that as the bank couldn't finance the government's budget or provide loans to it, the government has turned to other banks, leading to a rise in Treasury rates and heightened interest in loans for small and medium-sized enterprises (SMEs).