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Business News of Wednesday, 16 August 2017

Source: citibusinessnews.com

GCB takeover to strengthen banking operations – First Atlantic MD

Some bankers are upbeat about a turnaround in the operations of Ghana’s banking sector with the enforcement of laws governing the industry.

According to them, the Bank of Ghana’s decision to enforce its laws in the revocation of the licenses of UT Bank and Capital Bank over their insolvency will transform operations in the sector.

The Managing Director of First Atlantic Bank, Odun Odunfa tells Citi Business News banks will be compelled to re-strategise in order to solidify Ghana’s financial system.

“On the contrary, bankers and banking institution practitioners need to wake up to the responsibility to make sure that they run healthy organizations because they as investors and bankers will not get protection and that is also a good thing because by this, best practices will be enforced in the system,” he stated.

The central bank on Monday granted GCB Bank permission to take over the operations of UT Bank and Capital Bank as the two banks had failed to demonstrate ability to capitalize.

Meanwhile Mr. Odun Odunfa has lauded the Bank of Ghana for what he describes as its proactiveness in protecting the interest of customers.

“I think it must be explained to the people so that it can enhance the confidence in the system in that when push comes to shove, Bank of Ghana and the regulators will stand up for depositors to make sure that their deposits are secured and that must be good news to the industry. Also the BoG has said this under this GCB cover that no depositor will lose his or her
deposits.”