To the lay person, the bank acts as the saviour when it comes to investment and savings. People run to the banks with their hard-earned income and other financial increases because they trust that the banking body is well equipped to protect their monies.
However, not only are the banks failing the people but they are ready to render others jobless. And all this is due to the fact the regulatory body may not have done an adequate job on due diligence.
In no time a Susu or micro finance metamorphoses into a bank that has been licensed by Bank of Ghana.
Some years back, a financial hurricane hit Ghanaians because some supposed financial institutions, Resource 500 and Pyram, had their licenses revoked. This sent a lot of people to the hospitals with various degrees of mental and hypertensive ailments, while some ended six feet beneath.
When that happened, it was alleged then, that it was because Ghanaians had trusted those Nigerian financial institutions. Ghanaians, after the dust had gone down were encouraged to trust, save and invest in Ghanaian banks and financial institutions, something the Ghanaian entrepreneur bought into after some schooling on the subject.
With the merging of the five banks; with the fate of employees to be determined, there are bound to be casualties. Where would the jobless go? Will they be encouraged to start their own businesses? What banks can they trust when they don’t know which bank the regulatory body would bring down again?
We on NewsDay believe that this move is rather going to increase the number of the already jobless professionals. If Bank of Ghana had done its homework the financial sector would have done better with lesser, but qualified vibrant banks.