• About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • ChannelOne TV
  • Infographics
Tuesday, July 15, 2025
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Opinion
  • Listen To CitiFM
  • Watch ChannelOneTV
  • Videos
  • Citi Verify
  • Elections
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Opinion
  • Listen To CitiFM
  • Watch ChannelOneTV
  • Videos
  • Citi Verify
  • Elections
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
No Result
View All Result

Financial sector problems may not end soon – Economist

Delali Adogla-BessabyDelali Adogla-Bessa
September 27, 2018
Reading Time: 2 mins read
ShareShareShareShare

The struggles in Ghana’s financial sector may persist for a while longer according to Dr. Sam Mensah, a Finance Economist.

In the past 12 months, the financial sector has been characterised by bank collapses, job losses and an erosion of customer confidence.

[contextly_sidebar id=”P3pLJAWbjEwFRr1eVpRXBuoDMIKTyR0o”]The collapse of seven local banks; Beige Bank, Construction Bank, Royal Bank, uniBank and Sovereign Bank, UT Bank and Capital Bank, has had a rippled effect on the financial sector.

This is evidenced by the recent agitations of some customers of the First Allied Savings and Loans Company Limited who were compelled to storm the Manhyia Palace on Tuesday to petition the Asantehene, Otumfuo Osei Tutu II.

Some of them previously called on the Bank of Ghana (BoG) to investigate the management of the savings and loans company over its inability to pay its customers for the past three months.

There are similar challenges with other financial institutions.

Speaking on Citi TV’s Point of View, Dr. Mensah said confidence in the system was clearly shaken as there have been reports of panic withdrawals.

“We need to give the public some more assurances somehow, that their deposits are reasonably safe, but at this moment, I think that confidence is really low.”

The government has safeguarded the deposits of customers of the collapsed banks, and there have been delays in the recovery of funds, Dr. Mensah noted.

“A lot of institutions also have deposits with these seven banks and the process of recovering their deposits is very slow. I don’t think The Consolidated Bank is processing the deposits quickly enough. And so there are deposits from various financial institutions with these seven [banks] that went down.”

The lack of customer confidence will be helped by the quick settlement of liabilities, the economist added.

But this may not be enough as some of the savings and loans companies are caught up in the poor corporate governance practices that led to the banking crisis.

“It will certainly help if the liabilities of these seven banks are settled as quickly as possible, but it will not quite solve the problems because some of these savings and loans [firms] etc have their own credit management problems already… Resolving those seven banks will help build up a little more confidence but it will not resolve the problem because of mismanagement and poor credit management of many of these institutions.”

–

By: Delali Adogla-Bessa/citinewsroom.com/Ghana

Tags: BankingGhana News
ShareTweetSendSend
Previous Post

Zenith Bank gets global data security certification

Next Post

I won’t buy your votes, but I can serve you – Sly Mensah to NDC delegates

Related Posts

Featured

High Court denies Agradaa’s bail pending appeal

July 15, 2025
Opinion

Mental Health Advocacy: ‘Barima Nsu’ and the cost of silence – Dr. Duut writes

July 15, 2025
Featured

Avoid AI in early writing stages – Mamle Wolo urges aspiring writers

July 15, 2025
Featured

“I acted in self-defence” – Hawa Koomson justifies use of pepper spray

July 15, 2025
Featured

Franklin Cudjoe: Mahama’s fuel cuts commendable, should be codified

July 15, 2025
Featured

Stop using ‘Dr’ title – GTEC directs Hassan Ayariga over unverified academic credentials

July 15, 2025
Next Post
Sylvester Mensah

I won't buy your votes, but I can serve you - Sly Mensah to NDC delegates

ADVERTISEMENT
Citinewsroom - Comprehensive News in Ghana

CitiNewsroom.com is Ghana's leading news website that delivers high quality innovative, alternative news that challenges the status quo.

Archives

Download App

Download

Download

  • About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • ChannelOne TV
  • Infographics

© 2024 All Rights Reserved Citi Newsroom.

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Opinion
  • Listen To CitiFM
  • Watch ChannelOneTV
  • Videos
  • Citi Verify
  • Elections

© 2024 All Rights Reserved Citi Newsroom.