Business News of Sunday, 3 February 2013

Source: myjoyonline

Banking consultant sees nothing wrong with GAF establishing a bank

A Banking consultant, Nana Otuo Acheampong says he sees nothing wrong with moves by the Military to establish and operate its own bank.

This follows criticisms that greeted an announcement by the Ghana Armed Forces that it has gone far with plans to operate a commercial bank.

A lawyer, Moses Foh Amoaning even threatened to turn to the Supreme Court to stop the GAF from going on wit their plans.

But Nana Otuo Acheampong, who is also a lecturer at the Osei Tutu II Center for Executive Education and Research, says the Military's action does not contravene banking laws.

He said the Banking Act does not bar the military from operating a bank but requires only an incorporated body to undertake such a venture.

“If they can form an incorporated body and again it’s within their mandate, then I don’t see anything wrong with that..."

The only hurdle the GAF will have to deal with, he said, has to do with forming a limited liability company. “Once they get that, then they are on the first step in getting the license...”

The Ghana Armed Forces says it is planning to establish a holding company which will operate the bank, both for the military and the civilians.