BoG Rejects Decoupling Supervision from Functions

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has rejected calls for the supervisory functions of the banks to be carved out of the central bank.

He said the current arrangement offered the BoG the benefit of reconciling developments in the macro-economy sector with happenings in the financial sector.

That, he explained, would enable the BoG to take the necessary and appropriate policy measures to protect depositors.

Speaking on the sidelines of the Monetary Policy Committee (MPC) news in Accra, Dr Addison said: “These are the type of linkages that the central bank is more effectively able to assess and analyse than when you have two institutions carrying out these functions.”

The Managing Director of Cal Bank, Frank Adu, first triggered the call for a decoupling of the Banking Supervision Department from the Bank of Ghana measures to protect depositors.

Speaking on the sidelines of the Monetary Policy Committee (MPC) news in Accra, Dr Addison said: “These are the type of linkages that the central bank is more effectively able to assess and analyse than when you have two institutions carrying out these functions.”

The Managing Director of Cal Bank, Frank Adu, first triggered the call for a decoupling of the Banking Supervision Department from the Bank of Ghana (BoG) to enhance its monitoring roles.

According to him, the department is currently under-resourced so it is unable to fully undertake its responsibility of monitoring and sanitising the banking sector.

BoG under staffed

Speaking to journalists after taking their turn at the ‘facts behind the figures’ at the Ghana Stock Exchange, Mr Adu maintained that the Bank of Ghana’s Banking Supervision Department was heavily under staffed.

“It came up 10 years ago, it’s coming up again and I think when we reach the point when we think that is the way to go, I’m sure the appropriate decisions will be taken,” he said.

Source: Graphic Online