Expert wants Bank of Ghana to name and shame officials whose activities led to the collapse of some banks to restore trust

A financial economist and Senior Lecturer at the University of Ghana Business School, Dr Lord Mensah says that the Bank of Ghana (BoG) should name and shame officials who contributed to the collapse of some banks in the country.

Dr Ernest Addison, Bank of Ghana Governor

This according to him will restore customers trust in the banks they save with.

Dr Mensah was speaking at a breakfast meeting themed “Rebuilding Trust in Banking and Financial Service Industry in Ghana.”

He suggested that until properties of individuals responsible for the current banking crisis are confiscated and such persons are shamed, the trust in the banking sector cannot be restored.

“The current banking crisis is being handled will have a ripple effect on future occurrences,” he said, adding that, “If people are not made to face law publicly for offences, customers’ trust in the banking sector will keep dwindling."

Prior to the BoG’s recapitalisation requirement from the universal banks in the country, some banks were already faced with huge challenges that led to their collapse.

Reports have shown that the collapse of these banks was due to activities of some individuals and officials from the bank, however, these officials have not been held culpable by the BoG.

Dr Mensah advanced that clear cut punitive measures should be outlined in the Banking Act for individuals in high positions, and enforced when necessary to serve as a deterrent to others from engaging in activities that will negatively affect banks. Such policies should be intentionally publicised to the general public, particularly through avenues that will reach the informal sector.

“It’s about time we make the public to know that these are the level of punishment for anyone in the banking sector who breaches the law. Corporate governance should not remain in the lecture halls.”

He further noted that the lack of information from banks to individuals also plays a role when it comes to customers trust in a bank.

The expert hence called on banks to, as a matter of urgency budget for financial education aside the usual corporate social responsibility to educate customers on their activities and products.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022