Prof. John Gatsi Calls for Compensation for Owners of Collapsed Banks——-Professor John Gatsi, Dean of the University of Cape Coast (UCC) Business School, has urged Dr. Johnson Pandit Asiama, the newly appointed Governor of the Bank of Ghana (BoG), to take steps to compensate owners of banks that were collapsed during the financial sector clean-up.
He said the compensation would restore investor confidence and promote fairness in the country’s banking sector, adding that the compensation would also address concerns of grievances.
He further proposed the establishment of a National Reconciliation Commission platform, where those affected could receive a formal apology for their losses.
“The affected bank owners are still traumatized by the actions of the BoG. To restore confidence in the banking sector, we must ensure that they are duly compensated,” Prof. Gatsi said.
He stressed the need for clear assurances from the BoG to ensure that investors would not be worried about closure of banks in the near future.
He cautioned that failure to address the matter would create distrust and discouragement for investments in banking, insurance, and microfinance companies.
He also suggested that bank owners interested in resuming operations should have their licences restored, while those unwilling to return to the sector receive full compensation for their losses.
The UCC Business School Dean criticized the BoG’s handling of the banking sector cleanup, arguing that some banks had taken steps to resolve their liquidity challenges but were still forced to shut down.
He pointed out that a significant portion of Non-Performing Loans (NPLs) recorded by these banks were from government agencies failing to pay their clients, which worsened their financial conditions by these institutions.
Despite his criticisms, Prof. Gatsi commended Dr. Asiama for his commitment to restoring confidence in Ghana’s banking sector, urging that the new BoG Governor takes decisive steps to rectify past injustices and foster a fair and investor-friendly financial environment.
