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Bank of Ghana Cal Bank MD calls for restructuring of overburdened BoG

The Managing Director of Cal Bank, Frank Adu Jnr. argued that recent happenings in the financial sector give credence to the need to split the Central Bank.

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The Managing Director of Cal Bank, Frank Adu Jnr. Has called for the restructuring of the Bank of Ghana.

This is coming barely 72 hours after the second Deputy Governor of the Bank of Ghana (BoG) Dr. Johnson Asiama indicated that the Central Bank is in a poor financial state and needs immediate financial support from the government.

Mr Adu was speaking at an event at the Ghana Stock Exchange dubbed ‘Facts behind the figures’. He argued that recent happenings in the financial sector give credence to the need to split the Central Bank.

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“The Central Bank is so burden right now with the expansion of the financial sector, that maybe, they should look at their roles and responsibilities and categorizing them so that the Central Bank is there for its monetary policy financial stability etc. and we have the separate institutions which will take over the BSD (Banking Supervision Department) role of the Central Bank.”

“Because, I think today, with three, four hundred MBFIs, 30 something banks, all these other institutions, saving and loans coming up, the Banking Supervision Department will need an army of about 2000 people and 2000 people is a whole institution plus more.”

“So, if that could be hike-off from the Central Bank as a financial conduct Authority and they will be responsible financial supervision,” he added.

BSD, he said is capable but it is overstretched saying, “if it had the resources, I don’t think that we would have the situation we have had with the three banks.”

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A former Second Deputy Governor of Bank of Ghana Dr. Asiama earlier said that the Central Bank was broke.

This was after the government claimed that the regulator loaned $4million to the Ghana Interbank, Payment and Settlement System (GHiPSS) to roll out the Mobile Money Interoperability platform.

“The Bank of Ghana is actually in dire financial need if there is anything that the Central Bank needs today, it is for government to refinance the Central Bank because their reserves are dwindling…that is what they need from the government today.”

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