Depositor Refund Challenge Hindering BoG From Further License Revocation of Troubled Savings & Loans Companies – BoG Governor Says
Governor of the Bank of Ghana, Dr Ernest Addison, has said the banking sector clean-up exercise which saw the collapse of several financial institutions was not fully completed as there are currently, some troubled savings and loans companies whose licenses need to be revoked.
According to the Governor, the single major reason why the licenses of these troubled savings and loans companies have not been revoked is because the Government at the moment, does not have the resources to refund depositors of these savings and loan companies in the aftermath of the revocation of their licenses.
“The non-completion of the banking sector clean-up exercise is an issue that has been part of our discussions with the IMF.
“Because, some of the savings and loans companies are still in trouble as I speak, but their licenses have not been revoked, and the reason their licenses have not been revoked is that the Government does not have the resources to refund depositors, it is as simple as that,” he remarked speaking during an interview on PM Express monitored by norvanreports.
“And on that particular issue, we have been waiting for three years to get budgetary resources to be able to refund depositors after liquidating the savings and loans companies, but so far budgetary resources have not been made available to deal with that,” he added.
Speaking further, the Governor noted that the troubled savings and loans whose licenses have not been revoked, do not pose any systemic threat to the financial sector, given their size and exposures.
“Fortunately for us, these savings and loans companies are not systemic institutions when you look at their size and the amount of exposures they have, and therefore really, they do not have a systemic impact on the financial sector,” he intimated.
The financial sector clean-up undertaken between 2017 and 2020, significantly restructured Ghana’s banking landscape. The number of banks in the country was reduced from 34 to 23, while 347 microfinance institutions, 15 savings and loans companies, and eight finance houses had their licenses revoked.
As part of the reforms, some banks were merged to form the Consolidated Bank Ghana Limited, while others were acquired by state-owned GCB Bank. The Securities and Exchange Commission (SEC) also revoked the licenses of 53 fund management companies.
The clean-up exercise aimed to address corporate governance lapses and insolvency issues within the financial sector. The government pegged the total cost of its fiscal intervention at GHS 16.4 billion, excluding interest payments in 2019, although Vice President Dr. Mahamudu Bawumia later claimed that the clean-up exercise cost the state about GHS 25 billion.
There should be a thorough audit on this bank cleaning exercise. ORAL should be interested in modus operandi of the bank clean up looking at the expenditure incurred and whether it has served its purpose.
WHAT IS THE GOVERNMENT DOING TO THE ARCHITECHS OF THIS GROSS FINANCIAL MISMANAGEMENT?
I’M A PENSIONER WHO INVESTED MY LIFE LONG WORKING FUNDS WITH SOME OF THESE FINANCIAL INSTITUTIONS, REGULATED BY BOTH BOG & SEC.
FOR THE PAST FOUR YEARS, I HAVE NOT BEEN ABLE TO ACCESS EVEN MY PRINCIPLE, NOT TALKING ABOUT THE INTEREST.
why don’t they(B.O.G.) hold the officers involved criminally for violation of Ghana Laws. you can look at almost every commercial Bank & 99% of the Rural banks shouldn’t be banks at all. U.M.B. C.E.O. has conspired with Alibaba & Alibaba SELLER’S who committed FRAUDULENT Billing & BILLED ($261.00) U.S. Dollars for DHL EXPRESS SHIPPING from China to Sunyani , Ghana. Even though U.M.B. HAS aided in the sellers THEFT of ($261.00) Dollars from shipping an 1qkg cardboard box approx (1ft x 1ft x 1ft or (1 Cubic Foot), but insteadnof paying ($261.00) Dollars to DHL Shipping as Billed for SERVICES NOT RENDERED & Send ($0.00) ZERO Dollars & SENT My Tracking Number by (C.O.D.); CASH ON DELIVERY & by her stealing my ($261.00) Dollars & Paying Nothing ($0.00) ZERO Dollars To DHL. if thisbSeller had paid any money, (1) GHANA CEDIS, (1) CHINESE YUAN & ($1.00) U.S. Dollar regardless , she would have the receipt that SHE PAID & NOT since the seller did not pay DHL ANY MONEY AT ALL!!!!!!! why did U.M.B. give my exact same receipt that I Eric Meredith PAID (260.00) GHANA CEDIS PRINTED IN BLACK CAPITAL LETTERS TWO HUNDRED SIXTY GHANA CEDIS (260.00) GHC at the time of exchange rate if this Chinese SELLER PAID CHINESE DHL Shipping Office in GHANA CEDIS THAT I WAS FORCED TO PAY TWICE but even if U.M.B. want to protend that this DHL PAID IN GHANA CEDIS exchanged to U.S. Dollars was ($20.15) Dollars with an OVER CHARGED OF (240.85) U.S.Dollars that the seller if her receipt has GROSSLY OVER by ($240.00) U.S. Dollars. so the C.E.O. of U.M.B. (#1) doesn’t know the difference between a (0) & a (1)!!!!! let alone anything about exchange rates U.M.B. reply from the Seller that U.M.B. ARE CONSPRIACING WITH THIS SELLER, Alibaba.com & U.M.B. all have FRAUDULENTLY BILLED FOR SERVICE NOT RENDERED!!! Chinese DHL OFFICE WILL ONLY ACCEPT CHINESE YUAN For THEIR ONLY CURRANCY., Yes, she did bill ($261.00) Dollars IN THE EQUIVALENT IN CHINESE YUAN!!!! NOT IN GHANA CEDIS!!!! IN FACT The Sunyani, GHANA DHL MANAGER WILL BE SUBPOENAING HIM TO TESTIFY AGAINST The SUNYANI BRANCH MANAGER & The C.E.O. That the EXACT SAME RECEIPT THAT U.M.B. IS Claiming is her’s will TESTIFY that he received the (260.00) GHANA CEDIS & The SELLER PAID CHINESE DHL OFFICE ($0.00) Dollars, (0.00) Chinese YUAN & (0.00) GHANA CEDIS
I have my investment locked up with NDK Financial Services.For the past 5 years I have not been able to retrieve a pesewa.NDK was not affected by the clean up.Why am I not getting my money