Government has been advised to review the Executive’s powers in the appointment of the Board of Directors of the central bank to ensure proper scrutiny and supervision.
According to Mr Charles Mensah, a Financial Advisor, the appointment of the Board members should be bi-partisan to ensure proper representation by major stakeholders in the banking industry.
“It’s about time we amend the BoG Act to allow institutional representations on the Board,” Mr Charles Mensah said on Adom FM’s flagship program, Burning Issues, Wednesday.
The governing body of the BoG is the Board of Directors as stipulated in the Bank of Ghana Act, 2002 (Act 612).
The Board consists of the Governor, who is also the Chairman, two Deputy Governors and ten Non-Executive Directors.
The Board is appointed by the President of the Republic of Ghana, in consultation with the Council of State in accordance with Article 70 of the constitution.
Related: New 13-member Bank of Ghana Board inaugurated
The Board is appointed by the President, in consultation with the Council of State. The Governor and the two Deputy Governors are appointed for a term of four years and are eligible for re-appointment. The non-executive directors hold office for a period of three years and are also eligible for re-appointment.
His comments follow the decision by the BoG to consolidate five struggling banks.
Construction Bank, The Royal Bank, UniBank, BEIGE Bank and Sovereign Bank have been merged to form The Consolidated Bank of Ghana Limited.
The government has made GHS450 million available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO to manage the affairs of the struggling banks.
Mr Mensah told show host, Afia Pokua that the Bank of Ghana Act needs to be amended to ensure effective monitoring of the banks to avoid collapsing of banks.
He also charged the government to strengthen the capacity of the Inspectorate Unit of the central bank to effectively embark on proper monitoring to make the banking sector robust.
The Financial Advisor also tasked the BoG to regularly publish performance audit of the various banks in the dailies to enable their customers to ascertain the performance of their respective banks.
Meanwhile, Mr. Mensah has advised customers of the consolidated banks not to withdraw their deposits out of panic.
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