Ghana's Central Bank continues in its effort to sanitize the banking sector. Notably, among some obvious sanctions it has carried out the mandatory takeover of two private-owned banks: Capital bank and UT bank back by the state-owned Ghana Commercial Bank under the authorization of the Bank of Ghana in 2017. Other activities have been carried out by Ghana's Central Bank yet, the sector still needs some stability Currently, Ghana's banking sector is unstable though its prospect looks good in the too long future.Unibank, (It was adjudged the 6th best performing company in Ghana at the 100th Academy Awards in 2017). . Currently, the country's Central Bank has announced that as of 20th, March 2017, it has mandated and authorized the Management of Unibank, (privately owned bank) be dissolved and taken over by KPMG Interestingly!
Now, Bank of Ghana itself needs some home cleaning. It is very unacceptable to superintend over a sector from which a player is adjudged 6th best only The Central Bank, however, has its defense against the action against Unibank that the bank has persistently maintained capital adequacy level ratio close to zero which will be reasonably possible for Unibank is insolvent. Reports from the Central Bank said that it was unibanked to do not give any additional new loans to customers, however, the bank failed to comply with the directive and continuing new loans. Also, Unibank was directed to do not include any additional capital expenditures which they (Unibank) did not adhere to there, breaching section 105 of Act 930.
Admittedly, Unibank has been a creative bank if one should observe their banking activities over the years from the distance, as such, the central bank and KPMG guide to the bank should be one that will not dissolve their positive employee-customer culture which is readily seen to be "vibrating" in their customers and bank Unibank has some very loyal customers, with big numbers being traders. Bank of Ghana, therefore, should guide Unibank, taking into consideration the brand.
Having said this, the number of people is too much for Ghana The number should be capped as having close to 40 banks for a population of 26 million is obviously much What needs to be done? This can be done in two ways: expanding physical infrastructure to reaching customers and expanding digital (online / mobile banking) infrastructure. Already existing banks should be ready on their service experience, getting closer to people, expanding digital means of banking and improving on banking security.
Making it clear, however, I am not involved in any way against the registration of banks, in fact, my position is the direct opposite as I am not oblivious of the financial services to individuals and the economy as a whole. My position will pass for the opposite My views are clearly that instead of registering new banks, they have some of the branches with no superior services or infrastructures;
Finally, some of these financial institutions will have to consider the merger should there be any possibility of staying in the benefits of the business and serving customers at standards as the sector begins to become more competitive in the coming years and especially now that the minimum capital requirement has been increased by the central bank to 400 million Ghana Cedis for banks, which will take effect from December 2018.