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Ghana’s failed banks may had worked with weak business strategies

Ghana’s failed banks may had worked with weak business strategies


A few years ago, many Ghanaians were apparently unaware that most of Ghanaian banking institutions are not doing well and that they were not  even fully complying with all of the Central Bank’s Rules and Regulations. But I never knew they (especially those indigenous banks, micro-finance savings and loan schemes) are merely misleading the ‘Boards of Directors’, ‘shareholders’ and their paid up depositors.

Recent developments in the sector which resulted into the take over first of UT Bank and  Capital Bank by GCB Bank  before the entire micro-finance institutions in the sector were acquired and renamed as Consolidated Bank of Ghana by the Central Bank. With development, came the flying revelations that there was a great deal of flaws in the strategic thinking by the directors-owners. These were emboldened by the characteristic spitefulness of  some of these leader-owners of these banks in terms of their money management skills – giving loans to friends, etc.

I had no doubts that they were all previously perceived as smart guys. Yes they were, but it all happened at a time when they all ‘thought the country must moved forward’ with  or without supervision by the appropriate authorities. That didn’t happened. This is where they have particularly faltered and ended up in only doing a great disservice to depositors and for that matter the entire country where people who have incomplete records of the way these failed banks operated.

Before then, history has it that in the ancient days, treasuries like cowries, gold and gold ornaments, etc.  were kept in pots and mostly buried underground for safekeeping; however, received  wisdom confirm that, in fact, some of the spots where these valuables had been buried are even forgotten. Fortunately, a solution arose. Thus, with the advent of civilization coupled with the introduction of bank notes together with other reliable and dependable financial instruments these treasures are now kept and managed by banks and financial institutions of international repute.

Nonetheless, hardly do depositors really understand the workings or should I say the trappings of these reputable financial institutions and organizations or even appreciate the repercussions of  their day to day activities and how these activities impact on society deceptively.  This is what happen to Ghanaians depositors until the present government dutifully reviewed their performances and directed the Bank Of Ghana to revoke their  operating licenses.

A lot of facts about how the owner directors had seemingly set out to mislead us in Ghana and treacherously lead our economy on uncharted paths to financial crucifixion. In fact. some depositors had actually died after they lost thousands. So, somewhere along the lines we need to show leadership at all levels to enable the entire citizenry and trust our financial professionals.

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