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Thursday, November 21, 2024
BusinessPanic withdrawals trigger staff layoffs

Date:

Panic withdrawals trigger staff layoffs

Some financial institutions and savings and loans companies have started closing down some of their subsidiaries which have little staff strength.

This is to forestall the effects of panic withdraws which they foresee could result in their collapse.

Read: Panic withdrawals hit some savings and loans companies

Details of the restructuring

Some staffs say they have already received communication from their bosses that subsidiaries are going to be closed down soon.

One of the biggest savings and loans company [name withheld], is also considering reviewing the salaries of its workers in other subsidiaries.

According to some of them, their situation has been compounded by the fact that funds borrowed are also not being paid by most businesses. Also, recent panic withdrawals are worsening the situation.

The development is not only limited to financial institutions and savings and loans companies but macro finance companies.

Status of panic withdrawals

According to sources, some of the withdrawals are running into millions of cedis but it is not clear where the funds are going.

Read: Consolidated bank sacks over 400 former Beige bank staff

Joy Business has learned contrary to reports, it is not true that most of the funds are being sent to foreign banks.

Government has indicated that it would soon be rolling out measures to help some of the local banks that have been hit by the panic withdrawals.

Source: Joy Business

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