BoG to punish banks that submit inaccurate information

February 01, 2010
Techiman (B/A), Feb. 1, GNA - The Bank of Ghana (BoG) has directed that banks that fail to submit regular and accurate information about their operations to it would be sanctioned.

Mr Franklin Belnye, Assistant Director, Banking Supervision Department of the Central Bank gave the directive at the inauguration and opening of the 13th branch of the International Commercial Bank (ICB) at Techiman in Brong Ahafo.

He stated that the Central Bank acknowledged some challenges with providing information, but stressed that "failure to provide positive information as envisaged in the BoG License Act of XDS Data Limited as a credit reference bureau in the early 2009" was unacceptable.

Mr Belnye said the submission of positive information on a regular basis would help eliminate bad credit prospects from hurting the banking system.

He expressed regret about non-cooperation by some banks in the implementation of e-zwich smart cards which present opportunities for reaching the un-banked population.

Mr Belnye said BOG would soon apply sanctions to non-cooperating banks to ensure that the huge investment in the e-zwich card platform was beneficial to the banking system.

He said as the central bank entered its fourth year of implementation of the Risk-Based Supervision framework, it would continue to institute appropriate measures to ensure a vibrant banking system that would promote desirable economic growth and development.

To this end, the BoG would strictly enforce the provisions of the Banking Act (Act 738) to ensure that banks maintained adequate capital, liquidity reserves and qualified personnel.

Alhaji Adam Hafix, Techiman Municipal Coordinating Director, said access to finance continued to remain a challenge for small businesses with credit constraints pertaining to working capital.

He called on the ICB to pay attention to small scale business enterprises, particularly to reduce high processing costs relative to small loans and to minimize time consuming project appraisals.

Alhaji Hafix appealed to the bank to move away from collateral security requirement and lay emphasis on creditability and viability of enterprises.

Mr Sanjeer Anand, Chief Executive Officer of ICB said the bank was among a group of 160 banks under the ICB umbrella of which 10 were in Africa.

He intimated that the bank was currently operating in 14 countries adding the first bank was opened in Ghana in 1996 and since then 12 branches had been networked.

Mr Abdulai Alhassan, Deputy Director General, ICB, said the bank has products such as personal loans, auto loans, funeral plan, import and housing loans and encouraged the general public to patronize it.

Mr Clement Vanderpuye, a Director of ICB said the bank's focus since its inception had been small and medium enterprises with evidence in unique locations of the bank's branches closer to marketing centers.

Nana Baffour Asare Twi-Brempong, Adontihene of Techiman Traditional area, who unveiled the curtain of the bank commended the board and management for their hard work and varied contributions in bringing the ICB to the municipality.

GNA