Economist, Professor Godfred Bokpin, says state regulators have failed Ghana’s financial sector players.
According to him, their failure to protect financial institutions especially in the face of the government’s domestic debt exchange programme will not bode well for the sector in the near future.
He noted that the state regulators were expected to have played a watchdog role on the government’s spending to have avoided such a situation from occurring, however, they had been “accommodating to our fiscal slippages.”
Prof. Bokpin expressed concern that should the domestic debt exchange go on as planned, some banks that have been “coerced” into signing on to the programme would be rendered insolvent.
“I have a lot of respect for those at Bank of Ghana, but I’m sure the story will be told one day of how regulators teamed up with politicians over champagne and messed up Ghana’s financial sector. The story would be told one day.
“And I feel sorry for the role that regulators have played in coercing, essentially, these participating financial institutions. Evans, why are we concerned? Building institutions that should act as checks and balances, the regulators are there to protect the sector they regulate.
“It is this kind of attitude and posture, so accommodating to our fiscal slippages that has brought us here. And it’s the reason why with all the knowledge and the technical insight of the people at Bank of Ghana monetary policy is being perceived as subordinate to fiscal policy rather than it being complementary.
“I am sorry we have to say it; we can’t say it in any other way. When you’re more diplomatic about it then you’re talking about something else,” he said.
Latest Stories
-
Singer Ayra Starr releases artwork, track list for ‘Sophomore Album’
2 mins -
Actress Sola Sobowale debunks drug trafficking and arrests in Saudi Arabia
12 mins -
Zebra on loose after escape in US mountain country
25 mins -
Apple iPhone sales fall in nearly all countries
32 mins -
Bawumia takes campaign tour to Western Region
49 mins -
Ghana and India discuss trade at the fourth JTC meeting
1 hour -
Nkwanta South: MCE kneels to beg chiefs to give peace a chance
1 hour -
NDC hopes to win a majority of votes in Ho Central
1 hour -
Ghana moves up to 50th on World Press Freedom Index
1 hour -
I will make you millionaires – Bawumia assures small-scale miners
2 hours -
Majority caucus requests reconvening of Parliament
2 hours -
Ghana ranks as 4th most stressful country for workers in Sub-Saharan Africa
3 hours -
Today’s front pages: Friday, May 3, 2024
3 hours -
CAFCC: USM Alger file appeal at CAS to contest CAF’s decisions on RS Berkane jersey
4 hours -
Africa’s Outstanding Professional, Engr. Ebenezer Kwadjo Dankyi
4 hours