Information reaching Business Finder indicates that some banks in the country will undertake retrenchment exercise soon to reduce their high operational costs as a result of difficulties in the economy.
The Business Finder reports that two-tier banks are almost certain to carry out this exercise citing over bloated staff – a situation which is increasing their cost of operations.
While one of the banks is fully indigenous, the other is a foreign owned bank with strong presence in the country.
Presently, there are seven tier-one banks according to the PWC 2014 Ghana Banking Survey. They are Ecobank Ghana, GCB, Stanchart, Stanbic, Barclays, Zenith and Fidelity Bank.
This paper understands that about 150 workers from each of the two banks will be affected.
With regard to the indigenous bank, Business Finder further learnt that some staff members are anxious to accept the retrenchment offer since the package is expected to be good.
Already, some banks have laid off some workers, mainly contract staff in order to lessen the effect of the economic hardship on their businesses.
As many as about seven banks including GN, ADB and UMB recorded losses last year with very huge impairment. Their balance sheet was also affected by the economic downturn in 2015 coupled with the energy crisis.
A huge number of banks including Stanchart and Societe Generale also witnessed a reduction in their bottom lines.
According to the Bank of Ghana Financial Stability Report for 2015, the Ghanaian banking industry recorded negative 5.4 percent growth last year signaling a difficult financial year.
Latest Stories
-
19 steps for getting over even the most devastating breakup fast
1 hour -
8th Ghana CEO Summit launched with focus on AI transformation, economic diversification
2 hours -
Prof Opoku-Agyemang has not been given a fair appraisal – Ablakwa
2 hours -
Rainstorm wreaks havoc in Keta and Anloga districts, residents count their losses
2 hours -
Global Plastics Treaty negotiations begin in Ottawa as countries converge on phasing out problematic plastic uses
2 hours -
Support energy alternatives adoption to sustain businesses – GUTA tells government
2 hours -
11th DRIF opens in Accra with a call on governments to focus on digital inclusion
2 hours -
Stakeholders outline plans at RE4C Coalition’s General Assembly in Accra
2 hours -
Women Need ‘shock observers’ for active political participation – Ex-Bauchi Assembly Member
2 hours -
2024 polls: Stop fighting over positions in Mahama’s next government – Asiedu Nketiah
3 hours -
Although people may not always listen to the lyrics, there’s still a market for rap in Ghana – E.L.
3 hours -
Passengers appeal to transport operators to officially announce new fares
3 hours -
Damongo: About 400 NPP Members resign over Minister’s alleged meddling in chieftaincy affairs
3 hours -
Next NDC government will pay special attention to women – Naana Opoku-Agyemang
3 hours -
Amerado is singing and it’s good he’s doing that – Lyrical Joe
3 hours