Chairman of the Finance Committee of Parliament, Hon. Dr. Mark Assibey-Yeboah, has indicated that the country’s banking sector is safe for more investments despite the recent banking crisis, leading to the collapse of seven indigenous banks.
He pointed out that the banking sector remains vibrant as the assets of the collapsed banks formed less than 10% of the sector’s total assets.
Analysts have said the collapse of the seven banks in the country within 12 months will take a severe toll on the country’s financial sector and the economy.
“The Governor told us all that has happened. The total assets of the banks that have gone down is less than 10% of the entire banking sector, and so if we had bad assets, that will be a little below 10%, and even with that, depositors’ funds are safe. We have a strong banking sector and the financial sector in general, is strong”. The Chairman of the Committee had disclose at a media encounter.
Hon. Mark Assibey-Yeboah, however, bemoaned the lack of collaboration and information sharing among financial institutions and regulators.
The Bank of Ghana, the National Insurance Commission, the National Pensions Regulatory Authority and the Securities and Exchanges Commission, all regulate the Banking, insurance, investment and pensions sub-sectors of the financial industry, but the Parliamentary Committee on Finance has observed that they do not collaborate in their activities.
The 3-day Committee Hearing
The Finance Committee of Parliament on Friday ended its 3-day sitting on the banking sector crisis from September 5 to September 7.
Representatives from the Bank of Ghana, Consolidated Bank, KPMG, PwC and the Ministry of Finance, all attended upon the committee to provide perspectives on the development.
Some of the Owners and Directors of the seven collapsed banks under controversial circumstances, according to the Chairman, were not invited.
Despite numerous petitions to the Speaker to open up the process and make it public, the hearing was held in camera.
Officials of the Bank of Ghana, including the Governor, Dr. Ernest Addison, appeared before the committee on Wednesday morning to answer questions on the role of the BoG, but some members of the minority including a minister under the John Mahama administration, John Jinapor, described his answers as unsatisfactory.
The committee is expected to produce a report on the matter, include recommendations and present to the plenary, to avert a similar situation in the future.