Graphic Business News

BoG urged to strengthen regulations in banking sector

By: Lucy Mensah
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Ms Jennifer Akpo
Ms Jennifer Akpo

The Head of Portfolio Management at Nordea Capital, Ms Jennifer Akpo has called on the Bank of Ghana (BoG) to strengthen its supervisory role to ensure strict adherence of its rules and regulations by financial institutions in the country.

She said financial institutions constantly faced challenges because the BoG had laxed in the enforcement of its oversight mandate, therefore, resulting in the folding up of some banks.

According to her, some financial intermediaries such as micro finance institution and savings and loan companies that were given licenses by the central bank lacked experiences in terms of human capital and funds to cushion them in times of shocks.

In an interview with the GRAPHIC BUSINESS, Ms Akpo said the BoG needed to put measure in place to ensure that the banking sector was sanitised and transparent, thereby, promoting investor confidence.

She added that the BoG should make sure information provided by the financial institutions were accurate and available to the public.

“The BoG takes too long in coming out publicly with sensitive information that will protect the interest of depositors.

 “The Bank of Ghana should make sure banks and other financial intermediaries publicly publish their financial statements since some of them did not publish them for depositors to have privy to those statements,” she said.

 “When it is published, however, the BoG has to do diligence in investigating and verifying the information to ascertain accuracy and authenticity of the figures that are churned out by these financial institutions,” she added.

Ms Akpo highlighted that the BoG could bring about transparency in the banking sector if it sets up an independent rating agency for all banks to know their stance with regards to their transparency in the sector.

She said the agency should be autonomous and independent enough to ensure equality surveillance over supervised institutions towards sanitising and reposting of trust in the banking sector.

Additionally, she said there should be strong cooperate governance structures which constituted a board that would be strong and firm enough to endure that management do things right.

 “’This will ensure that managers, directors and stakeholders abide by rules and regulations that govern their responsibilities,” she said

She as well advised board of directors of financial institutions to deviate from compromising and shielding managers and information, rather they should let them out so that the regulator could apply appropriate punitive actions to curb matters.— GB