Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has cautioned the government and the Bank of Ghana (BoG) against rushing to reinstate the licenses of local banks affected by the banking sector cleanup.
He warned that hasty decisions could destabilise the financial sector and undermine public confidence in the economy.
The call for restoring licenses of some collapsed banks has gained traction following the appointment of Dr. Johnson Asiama as the new Governor of the Bank of Ghana.
Dr. Papa Kwesi Nduom, founder of GN Bank, has consistently argued that the closure of his bank was unjust, while Seidu Agongo, the majority shareholder of the defunct Heritage Bank, has echoed similar sentiments.
However, former BoG Governor Dr. Ernest Addison, before his early retirement, firmly opposed the reinstatement of revoked licenses.
Currently, foreign entities control two-thirds of Ghana’s 23 commercial banks, raising concerns about the diminishing presence of local ownership in the sector. Amid these developments, Professor Quartey has emphasised the need for a careful and independent review before any decisions are made.
“We must tread cautiously. Reversing decisions made by the Central Bank could set a dangerous precedent. If anyone disagrees with the decision, they should challenge it in court,” he stated.
He further added, “We have heard one side of the story calling for further investigation. However, we should not rush to reinstate individuals or entities that may have contributed to financial losses for the state.”
Professor Quartey’s remarks highlight the importance of ensuring that any actions taken to restore licenses are grounded in thorough analysis and due process, rather than haste or political pressure. His warning comes at a critical time as stakeholders debate the future of Ghana’s banking sector and its impact on the broader economy.
