A former manager of Capital bank has questioned the Central Banks' supervisory role in the face of damning revelations about seven banks’ which have collapsed within the last one year.
Edem Adimako is surprised that the supervisory department of the Bank of Ghana (BoG) carries out a quarterly audit of the banks every year yet failed to see the infractions until things got out of hand.
Contributing to a discussion on Joy FM’s Ghana Connect programme on the recent closure of five banks and the ensuing damning revelations, he said since BoG has oversight responsibilities they should have done better.
According to the banker turned Uber driver, “during the various banks’ crisis period, the BoG gave them bailout money without finding out what they were using the monies for.
“If I give you a loan, I should be able to know what you are using it for and not look on as you waste it. Who was supposed to check to see what the banks were using the money for?” he quizzed.
Many have questioned if the banking crisis that has so far claimed seven indigenous banks is a simple case of Ghanaians getting the banking sector they deserve.
According to some people, it is only a manifestation of the country’s decaying societal values where greed is the order of the day.
They argue that it is not for nothing that all seven banks are indigenous banks owned and managed by Ghanaians.
Responding to why only indigenous banks find themselves in the messy situation, Mr Adimako said “foreign banks have systems in place to ensure that there is a certain level of accountability. Aside from the normal audit, that the BoG may do, there may be that oversight responsibility from their managers outside the country.
“Even if you have the inclination to do something, you are careful, but the local banks do not have that kind of oversight responsibility,” he noted.
He believes aside from their various banks, the idea of knowing that they will be reporting to a larger body, they will keep their books in order because they will face the repercussions.
Watch a video of the discussion:
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