The Dean of the University of Cape Coast (UCC) Business School has called on the newly appointed Governor of the Bank of Ghana (BoG), to take steps to compensate the owners of collapsed indigenous banks.
According to him, such an action would heal the pain of affected bank owners, restore investor confidence, and promote fairness in the banking sector.
He further suggested the establishment of a National Reconciliation Commission-style platform where the victims could receive a formal apology for their losses.
“The affected bank owners are still traumatized by the actions of the BoG.
To restore confidence in the banking sector, we must ensure that they are duly compensated,” he said.
The Business School Dean emphasized that potential investors need assurance that their businesses will not be arbitrarily shut down in the future.
He warned that if the issue is not handled properly, it could create the impression that individuals who invest in banking, insurance, and microfinance could lose their assets unfairly at the behest of the BoG.
He suggested that bank owners who wish to resume operations should have their licenses restored, while those who no longer wish to continue in the industry should receive full compensation.
The UCC Business School Dean accused the BoG of being inconsiderate in its banking sector cleanup exercise, arguing that some bank owners had taken measures to address their liquidity challenges, yet their institutions were still collapsed.
He also highlighted that a significant portion of Non-Performing Loans (NPLs) recorded in the books of these banks was due to government agencies owing the banks’ clients, further complicating their financial situation.
Despite his concerns, the Dean commended Dr. Johnson Pandit Asiama for his pledge to restore confidence in Ghana’s banking sector during his swearing-in ceremony at Jubilee House by President John Dramani Mahama.
He urged the new Governor to take bold steps to rectify past injustices and ensure fairness in the financial sector, thereby fostering a stable and investor-friendly banking environment.
Prof Gatsi took this stance while speaking in an interview on Accra-based radio, last week.
