Some local banks hit by panic withdrawals

Some local banks are said to be under some sought of pressure as a result of the current challenges facing the banking sector.

Sources say this has resulted in some panic withdrawals from these institutions.

For some of these local banks, a day would not pass, without a customer, making enquiries on their investments or accounts that lead to closing it or moving it to foreign bank.

Reasons

Speaking to some of these banks, they say their position has been worsening by the recent collapse of the five banks - with all five of them being local financial institutions.  

According to them, this has given the impression that all the local banks are not in good position.

However, this has been rejected by some of these local banks, especially those in good position, arguing that their financial statements for last year and even half year should demonstrate that they are not in distress and they are indeed abiding by good corporate governance practices.

Challenging times for local banks

One individual that can be described as “high net worth client” for instance has told JoyBusiness that because of the current happenings, he has closed his accounts with about three local banks and move it one of the big foreign banks in the country.

Sources say government decision to move its accounts held with the commercial banks and move it to Central Bank has also completed issued for these local banks that were depending heavily on these deposits for their operations.  

JoyBusiness also understands that one of the biggest local banks recently had to turn to the Bank of Ghana for some emergency liquidity support to ‘kind of stay alive.’

Checks with the Central Bank show that out of the 30 Commercial Banks that are in operation, 13 are local Banks.   

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