Ghana's Central Bank continues in its effort to sanitize the banking sector. Notably, among some glaring sanctions it has implemented has been the foremost takeover of two non-public-owned banks: Capital bank and UT bank help by the notify-own Ghana Industrial Bank below the authorization of the Bank of Ghana in 2017. been implemented by Ghana's Central Bank but, the field collected wants some balance. Currently, Ghana's banking sector is unstable although its prospect looks appropriate in the not too a ways-off future must main rules and actions are implemented by the Central bank.
The sphere collected nursing it wounds over perfect three hundred and sixty five days sanctions on the 2 banks, but one other bank has experienced the central bank grunt sanctions, thus, Unibank, (It develop into as soon as adjudged the sixth easiest performing company in Ghana at the Ghana Club 100 awards in 2017) . Currently, the country`s Central Bank has introduced that as at 20th, March 2017, it has mandated and licensed the Administration of Unibank, (privately owned bank) be dissolved and taken over by KPMG. Interestingly!
Now, Bank of Ghana itself wants some dwelling cleaning. It is miles terribly unacceptable to superintend over a sector from which a participant is adjudged sixth easiest real for it to be mentioned to were withholding some foremost files. The Central Bank, however, has its defense for the hurry in opposition to Unibank that the bank has consistently maintained capital adequacy level ratio end to zero which agreeably would perhaps perchance perchance practically mean Unibank is bancrupt. Reports from the Central bank acknowledged that it directed Unibank to desist from granting any further unique loans to customers, however, the Bank failed to conform with the directive and continued granting unique loans. Also, Unibank develop into as soon as directed to desist from incurring any further capital expenditures which they (Unibank) did not adhere to thus, breaching fragment 105 of Act 930.
Admittedly, Unibank has been a ingenious bank if one must discover their banking actions over time from a distance, as such, the Central bank and KPMG files to the bank must be one which will not dissolve their obvious employee-customer custom which is readily considered to be “vibrating” among their customers and bank. Unibank has some very right customers, with huge numbers being traders. Bank of Ghana, therefore, must files Unibank, taking into story the logo that exists and discovering the glaring ways to revive the bank.
Having mentioned this, the series of Favorite banks is a ways too many for Ghana. The quantity must be capped as having end to 40 banks for a population of 26 million is obviously well-known. What needs to be done is to make the capability of new banks to “division out” to customers. This will perchance effectively be done in two ways: rising physical infrastructure to reach closer to customers and rising digital (Online / Cell banking) infrastructure. Already new banks must be thinking about bettering their provider abilities, getting closer to folk, rising digital ability of banking and bettering on banking security.
Making it decided, however, I am not whatsoever in opposition to the registration of banks, In truth, my station is the grunt reverse as I am not oblivious of the significance of business products and services to folk and the economy as a total. My station will pass for the reverse. My views clearly are that pretty than registering unique banks that with a few of them operates a few branches and not utilizing a exact products and services or infrastructures, it would perhaps perchance perchance be better to resource new banks to offer a protect to their capabilities.
In the end, these receive of monetary institutions will must set in mind merging must there be any possibility of staying loyal in enterprise and serving customers at standards as the field begins to develop into more aggressive in the impending years and furthermore especially now that the minimum capital requirement has been increased by the Central Bank to 400 million Ghana Cedis for banks, that will use receive from December 2018.