Expert wants Bank of Ghana to name and shame officials whose activities led to the collapse of some banks to restore trust

This according to him will restore customers trust in the banks they save with.

Dr Mensah was speaking at a breakfast meeting themed “Rebuilding Trust in Banking and Financial Service Industry in Ghana.”

He suggested that until properties of individuals responsible for the current banking crisis are confiscated and such persons are shamed, the trust in the banking sector cannot be restored.

“The current banking crisis is being handled will have a ripple effect on future occurrences,” he said, adding that, “If people are not made to face law publicly for offences, customers’ trust in the banking sector will keep dwindling."

Prior to the BoG’s recapitalisation requirement from the universal banks in the country, some banks were already faced with huge challenges that led to their collapse.

Reports have shown that the collapse of these banks was due to activities of some individuals and officials from the bank, however, these officials have not been held culpable by the BoG.

Dr Mensah advanced that clear cut punitive measures should be outlined in the Banking Act for individuals in high positions, and enforced when necessary to serve as a deterrent to others from engaging in activities that will negatively affect banks. Such policies should be intentionally publicised to the general public, particularly through avenues that will reach the informal sector.

“It’s about time we make the public to know that these are the level of punishment for anyone in the banking sector who breaches the law. Corporate governance should not remain in the lecture halls.”

He further noted that the lack of information from banks to individuals also plays a role when it comes to customers trust in a bank.

The expert hence called on banks to, as a matter of urgency budget for financial education aside the usual corporate social responsibility to educate customers on their activities and products.