Banking sector clean-up gradually restoring confidence

The Chartered Institute of Bankers Ghana says the financial sector clean-up carried out by the Central Bank is already yielding positive results in the industry.

Although there have been several arguments for and against the manner in which the exercise was done, the Institute insists the clean-up was necessary to build a robust financial system.

The shakeup in the financial sector has within the last two years, affected some nine indigenous banks, and over 400 savings and loans, micro-finance institutions and fund management companies.

The Regulators, the Bank of Ghana and the Securities and Exchange Commission specifically for the fund managers, have maintained that the revocation of licenses was the best option.

But the loss of jobs and depositors’ funds and the subsequent use of state resources to clean up some of the mess have been heavily criticized, with some suggesting that the revocation of licenses should not have been the last resort.

But the Chief Executive Officer of the Chartered Institute of Bankers, Ghana, Charles Ofori-Acquah, says the regulators’ methods were the best under the circumstance.

He contends that the cleanup is already yielding positive results in the industry, as institutions like the Chartered Institute of Bankers, Ghana, is minded to train bankers with the best of ethics and standards to strengthen the banking sector.

“You can say that the Institute having trained practitioners and certified them also is the body that ensures that they work to the professional code of conduct. So what we do compliments the whole effort” he explained.

Mr. Ofori-Acquah spoke to Citi Business News at the sidelines of the 10th Graduation Ceremony of the Chartered Institute of Bankers, Ghana.

Speaking at the same programme, the President of the Chartered Institute of Bankers, Ghana, Rev. Mrs. Patricia Sappor, charged the graduates to exhibit best work practices to strengthen the industry.

Education Minister, Dr. Matthew Opoku Prempeh, also expressed confidence in the banking sector, adding that the cleanup was a step in the right direction.

“The banker has the responsibility to protect the integrity of the banking system. Failure to perform this diligently will adversely affect the system. It is for this reason that the recent cleanup exercise undertaken by the Bank of Ghana in the industry, I think it was in the right direction”he noted.

Regardless of the job losses caused by the clean-up and the dwindling workforce in the banking sector largely due to the use of technology, some of the Chartered Bankers told Citi Business News they feel secured in the space, and that their confidence has been boosted by the clean-up.

“Actually after the cleanup, I am rather seeing a more robust banking sector”, one chartered banker stated.

Another said “I think now that the cleanup is over, it is time for the public to have more confidence in us the public”.

“I can see the confidence within the banking industry is now stronger. There are a lot of things going on in the industry, but I believe the public is now gaining back the confidence that was lost” said another Chartered Banker.

Source: citifm