BoG to publish list of ‘unfit’ bankers

The central bank has said it will soon publish a list of persons who are no longer eligible to work in the financial sector, owing to their direct and indirect involvement in certain malfeasances in their line of duty in other financial institutions.

The Governor of the Bank of Ghana, Dr. Ernest Addison – speaking at the Monetary Policy Committee (MPC) press conference in Accra on Monday, stated that the list of ineligible people emanates from the bank’s Fit and Proper guidelines, of which a draft was issued in July 2018.

“I think we should expect the final version of the guidelines to be issued by end of the year. The key issue is when the Bank of Ghana will publish the list of people who are considered not fit and proper as a result of some of the developments in the sector.

“This for us is the key issue. We are looking at the legal processes that are ongoing; and at the appropriate time when we are convinced, we will put out that list,” the Governor said.

The Fit and Proper Guidelines when issued will set out a framework which can be used by regulated financial institutions as well as the Bank of Ghana in determining whether a person or institution is fit to be a director, a significant shareholder or to hold a key management position within the organisation.

According to the Governor, the Guidelines is just one of the few measures the central bank is pursuing to tighten its regulatory function in the financial sector – which has been rocked by multiple bank failures and a number of struggling institutions.

The draft fit and proper guidelines, published in July, forbid individuals and institutions that pose a risk to the proper functioning of the regulated financial institution from being appointed as part of the management team, or from continuing their role when an issue regarding their fitness and propriety arise.

As gatekeeper of the financial sector, the Bank of Ghana ensures that regulated financial institutions comply with the requirements of putting in place robust governance arrangements, including the fit and proper requirements for the persons responsible for the management of regulated financial institutions.

Race to recapitalise

According to Dr. Addison, the December 31, 2018 deadline for banks to recapitalise is unchanged; and the bank has been closely monitoring and working with the banks toward their recapitalisation efforts.

“We are happy to note that many banks are close to meeting the new minimum capital requirement and a few are concluding discussions on mergers. We will communicate the outcome when the exercise is completed. We expect 2019 to commence with a well-capitalised and robust banking system with no weak institutions,” Dr. Addison stated.

The Governor also stated that the Bank of Ghana is as well monitoring the savings and loans companies and MFIs, and that it is aware of pockets of distressed institutions in the sector.

“We are working closely with the Ministry of Finance on a plan to resolve these problems in the sector, with a view to restoring trust and confidence,” he noted.

0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments