By Morkporkpor Anku, GNA
Accra, Oct. 16, GNA - The Ghana National Chamber of Commerce and Industry (GNCCI) on Tuesday expressed fear over the continued panic withdrawals in the financial institutions as that could undermine the collective efforts of building a safe, sound and secured financial sector.
The Chamber said essentially, the private sector and economic growth was at risk as lending to SMEs dried up.
Nana Appiagyei Dankawoso I, President of the Chamber, speaking at a News conference, in Accra, said there was firm assurances from the President, Nana Addo Dankwa Akufo-Addo and the Governor of Bank of Ghana that any individual found culpable in causing the collapse of the banks would be brought to book accordingly.
He said the reaction followed the failure of seven commercial banks and the perceived uncertainty about the security of depositor’s funds in financial institutions.
He said the recapitalisation of the Consolidated Bank, which had not been concluded added up to the level of uncertainty.
“Ghanaian financial institutions practise fractional reserve banking, which means that they are only required to hold reserves equal to only a fraction of their deposit liabilities,” he added.
He said the rest of the deposits they received were given out as loans and no financial institution was therefore able to pay all its deposit liabilities on demand and as the statutory representative voice of the business community in Ghana, the Chamber supported the on-going reforms in the banking and the larger financial sector.
Nana Dankawoso I said the efforts taken by the Bank to strengthen its supervisory and regulatory mechanism and government's support to the Consolidated Bank of Ghana and other indigenous banks were aimed at building a robust and resilient financial institutions.
He, however, urged financial institutions, especially the banks to constantly monitor and manage their risk exposures in building a healthy banking and financial services system, and government to continue to provide the right incentives on time to enable the institutions to deliver on their mandates.
He assured the private sector that it was engaging government, the Bank of Ghana and other relevant stakeholders to ensure a safe, sound, supportive, and stable financial sector, to provide affordable long-term credit to enable businesses grow and create jobs.
GNA
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