More banks will collapse before end of December - Economist

More banks will collapse before end of December - Economist

A chattered economist, Emmanuel Amoah-Darkwa, says Ghanaians should expect more banks to collapse before the end of December 2018.

So far, all banks are on the journey of meeting the minimum capital requirement of 400 million cedis. Some banks have already met the requirement while others continue to fall off either in mergers or acquisitions.

According to Emmanuel Amoah-Darkwa, "Ghana is currently not out the woods yet and more banks will collapse before end of December."

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Currently, some customers of some local banks have resorted to panic withdrawals following the collapse of some local banks in the country.

The situation forced business mogul and Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom, to lead a campaign against panic withdrawals in some selected communities where GN bank is located.

Ghana’s banking system has gone through various transformations since the late 1980s and that includes the adoption and implementation of the financial sector adjustment programme.

The privatization of some of the state-owned banks and the liberalization of the financial sector have led to the entry of a number of domestic and foreign banks into the industry.

Currently, there are over 30 banks operating in the country with more on the waiting list to acquire their universal licenses to begin operations.

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Though the liberalization of the financial sector has brought in some level of competition; it has equally brought in its own challenges as the sector has not responded to the level of efficiency that is required.

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Source: Yen.com.gh

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