A banking consultant, Dr. Richmond Atuahene, has asked the Bank of Ghana to be swift with plans to recapitalize the bank.
According to him, as a lender of last resort, the Bank must make sure to rebound as soon as possible or risk facing dire challenges in the next two years.
He said the consequences of BoG’s GH¢60 billion loss may not be felt now but later in the future when the bank is not able to play its role.
Quoted by Graphic Business, he said: “The losses themselves may not directly affect you today but have consequences over the period if it is not well managed. Today, banks are looking for capital and if the central bank cannot perform its role of the lender of last resort, what will be the situation?”
He added “There are certain specific roles that the central bank can continue to play effectively. However, if the situation is not well managed, in the next year or two, the reality can hit us hard.”
Dr. Atuahene however noted, that even though the country is not in a position currently to recapitalize the Central Bank, it must prioritize the act as soon as the coast is clear.
“If we say we want to improve the situation by retaining profit to put the BoG in a good position, this may take a lot of years. If you look at the losses divided by the profits they usually make, it’s going to take more than 25 years. Therefore, the government needs to quickly help recapitalize the central bank,” he explained
Source: Ghanaweb