Business News of Thursday, 6 August 2020Source: www.ghanaweb.comMost of the collapsed banks were run by people with questionable backgrounds – BoGGovernor of the Bank of Ghana, Dr. Ernest AddisonGovernor of the Central Bank has said that most of the collapsed banks and financial institutions that became insolvent due to the financial sector clean-up exercise by the Bank of Ghana in 2017, were run by persons with 'questionable backgrounds'. According to Dr Ernest Addison, before the takeover of the collapsed banks, these resolved institutions had several deficiencies with little or no experience in running banks. “Poor licensing practices led to licences being issued without the appropriate due diligence on shareholders and their sources of capital. The clean-up saw the revocation of licenses of 9 universal banks, 347 micro-finance companies, 39 micro-credit companies or money lenders, 15 savings and loans companies, 8 finance house companies, and two non-bank financial institutions. The move by the central bank was a comprehensive assessment of the savings and loans and finance house sub-sectors carried out by the BoG in the last few years after it identified serious breaches.

Source: GhanaWeb August 06, 2020 15:22 UTC