Professor Lord Mensah, an economist at the University of Ghana Business School, claims that the intention of John Dramani Mahama, the candidate for the opposition National Democratic Congress (NDC), to reinstate the licenses of banks that failed in 2017 while the current New Patriotic Party (NPP) government was in power, will cost the country more than it will gain.
Although he thought it was a good concept, reinstating the licenses would be expensive compared to the benefits, given the diverse areas of focus of the failed banks.
Prof. Mensah stated, "It will cost us," even if each of the banks had a purpose for existing, their specializations, and client objectives, in a radio interview on Accra-based 3FM on Tuesday afternoon (May 16, 2023), which Graphic Online listened to.
Compared to the advantages we would have obtained, it will cost us more.
A few commercial banks had their licenses revoked by the Bank of Ghana (BoG) in 2017 for failing to comply with legal criteria.
Restoration of licences by Mahama
On Monday, May 15, 2023, former President Mahama made a post-victory statement in Tamale as the flagbearer of the NDC, in which he pledged to reinstate the licenses of the bankrupt institutions whose licenses had not been "fairly revoked" when he comes to power in the general elections of 2024.
In a related response on 3FM, Prof. John Gatsi, dean of the University of Cape Coast School of Business, stated the choice to reinstate the affected banks' licenses was a positive one and that "it is going to help."
It will force regulatory officials to be vigilant in ensuring that everyone's rights are respected.
He believes that it will send a clear message to the central bank that it must be impartial in its regulatory duties and that it must treat everyone equally, regardless of whether they are in or out of power.
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