A renowned banker in the country has called for the separation of mandate of the Bank of Ghana to help put the financial industry into proper check and balance.
He has called for some divisions in the role of the Bank of Ghana too.
According to Managing Director of Cal Bank, Frank Adu jnr the separation of mandate or splitting of the central bank into two separate bodies will enable it to perform efficiently in its supervisory role.
The financial industry regulatory body, BoG, was established many years ago when there were only a few banks in the country but with the rampant nature of financial sector institutions, the supervision department of the bank needs to be separated from the bank.
“If you ask me I think the supervision department alone needs an army of about 2000 staff to work with. That 2000 is a whole institution on its own before we can be able to manage the situation” he said.
“I am not the one proposing this idea but it is done in Europe and the other advanced countries so why can’t we do it here?” Mr Adu Jnr asked.
He made this appeal in an interview after the bank took its turn at the fact behind the figures series at the Ghana Stock Exchange.
“Look at the number of banks and microfinance institutions that have turned up in the country over the few years but we still have the bank of Ghana regulating all of them.”
Mr Adu Jnr also dismissed claims that he will be resigning from the bank. In clarifying the situation, he said the bank shall continue to experience growth even if he is not the Managing Director.
He described the recent occurrences in the banking sector as troubling but could have been avoided if a separate institution is set up to assist the central bank.
He, however, advised all relevant stakeholders to be wary of how to discuss these issues and how they are managed.
He said there was too much speculation in the sector and this does not bode well for the sector as it seriously affects local banks particularly.