Fear continues to emerge as experts analyze the infrastructure of Ghana’s weak banking sector. Financial analyst Dr. Daniel Seddoh said he is adamant that the fallout of Ghana’s banks “is not over.” But the solution is simple, he says. He explained that a large part of the problem is Ghana's superfluous number of banks. Thirty-four of them to be exact.
“Ten would be ideal,” Seddoh says. “In Canada, their financial sector is working,” because they only have five banks that dominate the country. He further explained that part of Bank of Ghana’s failure to quickly spot and rectify errors boils down to the massive number of banks and their numerous branches throughout the nation.
“It’s about efficiency. Bank of Ghana can only do so much. The activities are blurred,” adding that “if we are going to solve the problem realistically we need to look at regulation.” Seddoh suggests that Bank of Ghana (BoG) implement a new regulatory strategy that would oversee all the microfinance and banking institutions in the country. “BoG does not have the capacity to change these things. We need better regulations.”
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