The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has firmly stated that no revoked banking licenses will be reinstated during his tenure. He explained that the revocations were the result of comprehensive reviews into the operations of the affected institutions, many of which engaged in risky investments and mismanagement of depositor funds.
In an interview with Joy Business, Dr. Addison emphasised that the actions of these institutions violated banking principles, with shareholders using depositor funds for personal ventures or illiquid investments. He categorically ruled out any restoration of these licenses, stating, “As long as I remain Governor, none of those licenses will be reinstated.”
Between 2017 and 2019, the Bank of Ghana revoked the licenses of nine universal banks, 347 microfinance companies, 39 microcredit firms, 23 savings and loans institutions, and eight finance houses. Some institutions were merged to form Consolidated Bank Ghana (CBG) to ensure continuity of services.
Ahead of the 2024 elections, former President John Mahama promised to restore the licenses, conditional on a thorough and impartial review of the financial sector. However, Dr. Addison reiterated that a banking license is a special privilege and should not be taken lightly. “When I give you a banking license, I am giving you permission to take people’s money, not to treat it as your private property,” he stated.
Source:TheDotNews