Prof. John Gatsi Urges BoG Governor to Compensate Owners of Collapsed Banks
The Dean of the University of Cape Coast (UCC) Business School, Professor John Gatsi, has called on Dr. Johnson Pandit Asiama, the newly appointed Governor of the Bank of Ghana (BoG), to take steps to compensate the owners of collapsed indigenous banks.
According to Prof. John Gatsi, such an action would heal the pain of affected bank owners, restore investor confidence, and promote fairness in the banking sector.
He further suggested the establishment of a National Reconciliation Commission-style platform, where the victims could receive a formal apology for their losses.
“The affected bank owners are still traumatized by the actions of the BoG. To restore confidence in the banking sector, we must ensure that they are duly compensated,” Prof. Gatsi said, during an interview on Accra-based Kessben FM on Wednesday, February 26.
Investor Confidence and Policy Concerns
The Business School Dean emphasized the need for assurances to potential investors that their businesses will not be arbitrarily shut down in the future.
He warned that if the issue is not handled properly, it could create the impression that individuals who invest in banking, insurance, and microfinance could lose their assets unfairly at the behest of the BoG.
He also suggested that bank owners who wish to resume operations should have their licenses restored, while those who no longer wish to continue in the industry should receive full compensation.
Criticism of the Banking Sector Cleanup
The UCC Business School Dean criticized the BoG’s handling of the banking sector cleanup, arguing that some bank owners had already taken measures to address their liquidity challenges, yet their institutions were still shut down.
Prof. Gatsi also highlighted that a significant portion of Non-Performing Loans (NPLs) recorded in the books of these banks was due to government agencies owing the banks’ clients, further complicating their financial situation.
Support for Dr. Asiama’s Banking Sector Reforms
Despite his concerns, the Dean commended Dr. Asiama for his pledge to restore confidence in Ghana’s banking sector during his swearing-in ceremony at Jubilee House by President John Dramani Mahama.
He urged the new Governor to take bold steps to rectify past injustices and ensure fairness in the financial sector, thereby fostering a stable and investor-friendly banking environment.
