Don’t rush to restore licences of collapsed banks – Peter Quartey warns

Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has urged the government and the leadership of the Bank of Ghana (BoG) to proceed cautiously in considering the reinstatement of licenses for local banks affected by the banking sector cleanup.

He warns that rushing the process could destabilize the sector and erode confidence in the broader economy.

The push to restore licenses for some collapsed banks has gained momentum following the appointment of Dr. Johnson Asiama as the new Governor of the Bank of Ghana.

GN Bank’s founder, Dr. Papa Kwesi Nduom, has repeatedly maintained that his bank’s closure was unjust, while Seidu Agongo, the majority shareholder of the defunct Heritage Bank, has also expressed similar concerns.

However, former BoG Governor Dr. Ernest Addison, before his early retirement, firmly opposed reinstating the revoked licenses.

With foreign entities now controlling two-thirds of Ghana’s 23 commercial banks, concerns over local ownership in the sector are growing.

Despite these concerns, Financial Analyst, Professor Peter Quartey, has cautioned against making hasty decisions. He emphasized the need for a thorough, independent review before any action is taken.

“I think we should tread cautiously. You don’t want to set such a precedent where the Central Bank takes a decision and then it is reversed.If anybody has issues with that decision, that person can challenge it in court,” he said.

He further added that: ” We have listened to one side which calls for further investigation. Let us not be in a haste to reinstate people who perhaps have caused financial loss to the state.”