Financial analyst, Dr. Daniel Seddoh has cautioned that the looming dangers in the financial sector is far from over.
According to him, the infrastructure of Ghana’s weak banking sector which is the cause of the crisis in the financial industry must be appropriately checked by government.
Speaking on Joy FM'S Super Morning Show, Dr. Seddoh indicated that a large part of the problem is Ghana's superfluous number of banks adding that regulators of the system must keep the numbers in check.
“Ten would be ideal,” Seddoh says.
“In Canada, their financial sector is working,” because they only have five banks that dominate the country.
He further explained that part of Bank of Ghana’s failure to quickly spot and rectify errors boils down to the massive number of banks and their numerous branches throughout the nation.
“It’s about efficiency. Bank of Ghana can only do so much. The activities are blurred,” adding that “if we are going to solve the problem realistically we need to look at regulation.”
Seddoh suggests that Bank of Ghana (BoG) implement a new regulatory strategy that would oversee all the microfinance and banking institutions in the country.
“BoG does not have the capacity to change these things. We need better regulations.”