Banking Consultant, Nana Otuo Acheampong has downplayed effects of the ongoing panic withdrawals that have hit local banks.
It follows fears that the situation could lead to capital flights which will distort economic growth considering the magnitude of withdrawals that may be involved.
The uncontrolled withdrawals embarked on by customers of banks and specialized deposit taking institutions became rife following the revocation of licenses of five banks into the Consolidated bank.
This also came after the revocation of licenses of UT and Capital banks where they were absorbed by GCB Bank.
Banking Consultant, Nana Otuo Acheampong explains to Citi Business News that the development may not be surprising.
“What is happening is that the confidence has been affected and there is no kidding about it. So it is now up to the banks to gain the confidence of investors. So the panic withdrawals is expected but it is only temporary,” he said.
Some bankers who manage indigenous banks and spoke to Citi Business News also shared these unique experiences with panic withdrawals.
“What is happening on the market has affected everybody; there is a huge panic withdrawal but we want to assure the customers that we do not have any challenge; we are a group, we are in fourteen countries so it is easy to move funds to be able to support any challenged branch,” Dr. Kojo Aboagye-Debrah, the Deputy MD of Sahel-Sahara bank recounted.
Again, the Managing Director of Omnibank, Philip Oti-Mensah observed, “Even though Omnibank has not been really affected, it is a industrywide issue which I believe that both the bank themselves and the central bank and the media should work to reverse.”
On whether we should be concerned on possible capital flights and their attendant impact on the local economy, Nana Otuo Acheampong responded in the negative.
“I doubt it because they are withdrawing and not taking the money abroad. Those who withdraw their monies are either putting their monies at worse under their pillows or deposit at another bank that they feel they are confident with. the only part that is not helping is that now, no one is granting loans and it is loans that will get the engine of growth turning round,” he assured.
The Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom is embarking on a nationwide campaign and he is confident the move will trigger support from colleague Managing Directors of indigenous banks to bring the situation under control.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana
The post Panic withdrawals: Don’t be anxious of capital flight – Nana Otuo appeared first on Citi Business News.
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