Return licenses of collapsed banks if investigation proves revocation was ‘callous, reckless’ – Dr. Yamson to Gov’t

Chairman of the National Economic Dialogue, Dr. Ishmael Yamson has said licenses of collapsed banks who suffered the banking sector clean-up exercise must be returned if government finds the exercise not worthy.

Speaking in an interview on Hot Issues, Sunday March 8, Dr, Yamson called for an independent body to review the Bank of Ghana’s reasons for collapsing the banks.

He noted that if after investigations, it is established that the clean-up was simply “callous and reckless”, licenses must be returned to the affected banks to resume operations.

Recounting the financial sector clean-up, he explained that government should have allowed the banks to operate by replacing management with competent leaders and punish those who may have been found guilty of financial mismanagement rather than completely shutting down the banks.

He suggested that at the time, government ought not to have closed the banks as there were many options including even relinquishing shares of the leaders who contributed to the liquidity challenges of the banks.

“We should probably say you bunch of people, you did x, y and Z and should face the law but the bank will remain and we will put management there, people with integrity to continue with the bank and not to close it down,” he added.

While suggesting an independent review of the reasons on why the banks were closed down, he urged that a more careful and rationale approach must be used in resolving the matter.

President John Dramani Mahama had criticized the former leadership of the Bank of Ghana for  the way and manner the banking sector clean-up exercise was carried out.

The banking sector clean-up exercise saw the closure of several financial institutions.

In his address at the swearing-in ceremony of the New Governor and Deputy governor of the Bank of Ghana, on Tuesday, February 25, John Mahama expressed his concern that the decisions made under the banking sector reforms led to severe consequences for individuals and families.

The President had promised to restore the licenses of the banks that in his view, were unjustly revoked.

Banking sector clean-up: We need an independent body to review BoG’s reasons – Dr. Ishamel Yamson