Ghanaian Banks Collapsing Because Every Successful Businessman Wants To Own A Bank

Ghanaian Banks Collapsing Because Every Successful Businessman Wants To Own A Bank

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Specialization is alien to us in this country, every businessman, who has tried one business and succeeded, wants to open a bank.

The situation is what has led to the over 30 commercial banks operating in the country, with more than 15 being indigenous ones.

About a week or two ago, the Bank of Ghana, the regulator, which is also complicit in the collapse of our banks, has taken over Sovereign Bank.

The Central Bank, has also developed the penchant of dishing out license to very Tom, Dick and Harry, who applies for it.

It is not acceptable that the Central Bank, should stand aside, wring its hands in despair and despondency, in a manner that suggests helplessness, while many banks are on the verge of collapse.

We are beginning to the see the length of a frog after its death, because the Bank of Ghana, has remain adamant about any prospect of extending the December deadline of the new minimum capital requirement of GH¢400, 000,000.00.

The richest man in Africa, Aliko Dangote, does not own a bank, the richest man in the world, Bill Gate, does not own a bank, Jack Ma, Mark Zuckerberg, all billionaires, do not own banks, what is it  with us that, every person, feels he can also run a bank.

The near collapse of many of the local banks, threaten confidence in the system. Banking is serious business that should not be left to businessmen to toy with.

The government is in the process of raising a bond to settle the liabilities of UT and Capital Banks, which were liquidated last year.

Aside the threat to depositors’ money, the tax payer, will also be called upon to pay for the inefficiencies of the managers of these banks.

We are familiar with the thesis that in a market economy there is free entry and free exit; also that policies must not be by fiat. But there are no such absolutes anywhere.

It is our considered opinion that the BoG, does not issue banking licences to people, because they have been successful in one field of endeavor or another, the economy is at risk, should all our local banks run aground.