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Business News of Sunday, 17 September 2017


Bank executives to face BoG sanctions for reckless decisions

The Bank of Ghana (BoG) will soon put a bill before parliament that will empower the central bank recall bank executives whose actions and decision result in the collapse of banks, Head of Banking Supervision at the BoG, Mr. Raymond Amanfu has said.

This follows the collapse of UT Bank and Capital Bank recently.

The move, according him is aimed at discouraging executives of banks from taking reckless decisions.

Speaking at a Breakfast Meeting with executives of banks at the National Banking College, the Head of Banking supervision at the Bank of Ghana, Mr. Raymond Amanfu disclosed that the central bank will soon table the bill before parliament.

“We are looking at bringing in claw back clause. We have seen that most top executives’ bonuses and incentives are performance based and that excites them to take very risky decision. Excessive risks,” he noted.

He stated that studies have shown that such decisions take time for the full effect to manifest.

“By the time the risk will crystallize they have collected their money and gone home. We are looking at introducing a claw back, if you go and three years within the time the risk crystallizes, you will be called to refund your benefits,” he warned.

Mr. Amanfu stressed that it is important to clean the banking industry to protect consumers and enhance the financial system for economic development.

“We have to sanitize the system. These are discussions that we have had largely with the industry, but of course, we have to take it to parliament for parliamentary approval”.