Longterm Relationship With Local Banks Crucial - Banking Consultant

By Kingsley Asare

Customers of local banks should not break the relationship they have developed over the years with their banks in view of the recent banking crisis, a banking consultant, Nan Otuo Acheampong has said.

Rather, he said the customers of the local banks should consider a long term banking relationship with their local banks.

Speaking with the Times Business on the current happenings in the banking industry, the banking consultant said the customers of the local banks would be the ultimate losers if they broke the relationship they had developed over the years with the local banks.

According to him, by the end of December some of the local banks would have met the new GHc400 million Minimum Capital Requirement and that would make more capital available to the local banks to advance to customers.

"Since banking is now relationship banking, ... if you feel that you dessert a Ghanaian bank, go to a foreign bank and then after December when they had gotten the GH400 million and you want a loan and then you want to come back," it would be difficult.

"Customers of the local banks have to look at the relationship with their banks holistically on a long term basis and if on the long term basis these banks are going to be there and you need their assistance, then the advice we are giving is that don't leave them now, stay with them," he said.

The banking expert intimated that since the collapsed of some local banks, the impression had been created that all the Ghanaians banks were not financially strong and therefore it appeared there was capital flight from the Ghanaian majority owned banks to the foreign banks.

"The assurance given by the government through the Bank of Ghana governor that no depositor will lose a penny if any bank is to collapse should give some confidence to Ghanaians in the banking industry," Nana Acheampong said and insisted that none of the over million customers of the defunct banks lost their deposits.

He also said the governor of the BoG had assured that between now and December, he did not foresee any bank collapsing, other than those who government would help to merge if the they are not able to meet the GH¢400 million minimum capital requirement.

The banking consultant said most of the local banks would meet the capital requirement by the end of the year and those who could not meet the requirement and were ready to merge would be supported by the government to meet the requirement.

According to him, the local banks which did not meet the requirement and did not merge would be forced to merge.

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