ISSER Director Cautions Against Hasty Reinstatement of Bank Licenses
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has advised the government and the Bank of Ghana (BoG) to exercise caution in considering the reinstatement of licenses for local banks affected by the banking sector cleanup.
His warning comes amid growing calls to restore licenses to some collapsed banks, particularly following the appointment of Dr. Johnson Asiama as the new Governor of the BoG.
Speaking in an interview, Professor Quartey stressed that a rushed decision could destabilize the banking sector and erode confidence in the broader economy.
“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 noted.
The debate over reinstating bank licenses has intensified, with GN Bank’s founder, Dr. Papa Kwesi Nduom, and Heritage Bank’s majority shareholder, Seidu Agongo, both insisting that their banks were unfairly shut down.
However, former BoG Governor Dr. Ernest Addison firmly opposed any moves to restore the revoked licenses before his early retirement.
Currently, foreign entities control two-thirds of Ghana’s 23 commercial banks, raising concerns about dwindling local ownership in the sector. While some argue that reinstating local banks could boost indigenous participation, Professor Quartey maintained that a thorough and independent review must precede any action.
“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,” he added.
The BoG and the government now face a delicate balancing act—addressing concerns of fairness while safeguarding the stability of Ghana’s financial sector.
