Government has been advised to review the powers of the president in the appointment of the Bank of Ghana (BoG) Board Members to ensure proper scrutiny and supervision.
According to a Financial Advisor, Mr Charles Mensah, the appointment of members should be bi-partisan to ensure proper representation by major stakeholders in the banking industry.
ALSO READ: Tweet by Mahama that has driven social media crazy
“It’s about time we amend the BoG act to allow institutional representations on the board,” Mr Charles Mensah on Wednesday said on Adom 106.3 FM’s political talk show, Burning Issue, on the back of the decision by the BoG to consolidate five struggling banks in the country.
Five struggling financial institutions, Construction Bank, Royal Bank, uniBank, BEIGE Bank and Sovereign Bank have been merged to form the Consolidated Bank of Ghana Limited.
The government has made GHC 450 million available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO to manage the affairs of the struggling banks.
RELATED ARTICLES:
-
We manage risk; we don’t prevent banks from collapse – BoG
-
VIDEO: BOG Merger: People will soon save under their beds – NDC Man
The governing body of the BoG is the Board of Directors as stipulated in the Bank of Ghana Act, 2002 (Act 612). The Board consists of the Governor, who is also the Chairman, two Deputy Governors and ten Non-Executive Directors.
The Board is appointed by the President of the Republic of Ghana, in consultation with the Council of State in accordance with Article 70 of the constitution.
But Mr Mensah believes the law needs to be amended to ensure effective monitoring of the banks to avoid collapsing of banks.
He charged the government to strengthen the capacity of the Inspectorate Unit of BoG to enable them to embark on proper monitoring to avoid issues of commercial banks folding up.
The Financial Advisor also tasked the BoG to regularly publish performance audit of the various banks in the dailies to enable their customers to ascertain the performance of their respective banks.
Mr Mensah advised customers not to panic to withdraw their deposits from the liquidated banks.
