Member of Parliament for Sagnarigu constituency, Alhaji A.B.A Fuseini, has commended the Bank of Ghana (BoG) for its interventions which has led to the consolidation of some five distressed banks in the country.

On Wednesday, August 1, 2018, Governor of the Bank of Ghana, Dr. Ernest Addision announced that assets of some five banks have been transferred to a newly established Consolidated Bank Ghana Limited.

The banks:The Royal Bank, Beige Bank, Sovereign Bank, uniBank and the Construction Bank are said to have been faced with issues of liquidity.

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Speaking on the issue on TV3 New Day on Saturday, August 4, A.B.A Fuseini said the regulatory decision of the BoG to ensure that activities of these banks are properly managed is commendable.

He noted that although the BoG did a good job by intervening to salvage the situation with the five banks, the move leaves room for more questions about the effectiveness of the Bank of Ghana.

“It gives an impression of a wider rot within the financial sector. There are many banking and financial institutions in this country that do not have the license to operate.”

According to the Ranking member on the Communications Committee of Parliament, the activities that led to the closure of the five banks is one that is of great concern, and ought to be properly dealt with.

“The revelation by the Bank of Ghana, in terms of the activities of these banks, as regards their depositors, have been very worrying; worrying because, there appears to be a breach of trust between the depositors and the owners of the banks.”

“It gives an impression that what we have suspected all along as a people that the regulatory function of the Bank of Ghana has not been effective, is true, ” he added.

The Sanarigu MP further alleged that there are financial companies in Ghana that are moving depositors’s money into landed properties, and the BoG has to act to stop the practice.

He stated that these activities of some financial institutions are criminal; hence, the necessary actions ought to be taken to deal with any institution found culpable.

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“Moving money to buy landed property without proper authorization is very inappropriate, and giving money to shareholders without due process is criminal,” he said.

According to him, the Bank of Ghana ought to be transparent and consistent in clamping down on illegal activities within the financial sector.

The Minority Spokesperson on Communications also charged the Bank of Ghana to see issues of illegality to the end, and keep the general public informed about developments.

“In all these instances, what has the Bank of Ghana been doing? For us, it is important that proactive steps are taken and not reactive steps, because reactive steps when taken can shake the fundamental foundations of the banking industry.”

Source: 3news.com