The Dean of Cape Coast University Business School, Professor John Gatsi has stated that banks will face difficulties in meeting international standards when the International Monetary Fund’s (IMF) resident advisor for financial sector supervision to the Bank of Ghana (BoG) takes office.
According to the Dean, the decision by the IMF will make the governor and deputies at the Bank of Ghana powerless.
The IMF has given a Resident Advisor in financial sector supervision to the Bank of Ghana to help with technical assistance and to assist in strengthening the capacity of the banking supervision function.
The move was as a result of a request from the Bank of Ghana and fully funded by Switzerland’s State Secretariat for Economic Affairs (SECO).
Talking on the appointment on “Starr Today” Wednesday, February 15, 2023, Gatsi described the move as “turbulence news” for the country’s financial sector.
“By the appointment, all the powers that are held by the governor, his deputies and key officials are subject to the powers given to the Resident Advisor. To the extent that clearance will be sought in taking major decisions of the bank. That is the implication of the appointment and they are aware of that and they will comply accordingly.
“There is going to be strict adherence to International Financial Standards in terms of reporting the accounts of the bank. There is going to be adherence to strict governance structures and practices. There is not going to be political inducement in the governance structures as we see. So that will be good but in terms of accounting that puts some stress on the bank in terms of adherence to the strict requirements in the International Financial Reporting Standards” Mr. Gatsi stated .
He said as a result of the Banking Sector Cleanup since 2018 banks in the country have been “mutilated” to the extent that some of the banks are only standing and not strong.
“Some of the banks for about five years they have not filed their annual report, they have not had their ADM. So those things will become a challenge when the resident advisor begins work and pressing on for the requirement of applying International Financial Report Standards,” the CCUBS dean added.
