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Monday, December 2, 2024
HeadlineBoG limits reappointment of Directors, CEOs of insolvent banks

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BoG limits reappointment of Directors, CEOs of insolvent banks

Former managers of financial institutions who have been complicated in any act of insolvency or folding up of their companies risk not assuming any managerial role within the banking industry.

This is because the central bank is getting tougher with its rules governing the financial sector.

The latest guideline to be issued by the Bank of Ghana for the banking sector aside from two others in less than a month is the Fit and Proper Directive.

Amongst others, the directive sets the framework which helps in determining whether a person is fit to be a director, a significant shareholder or to hold a key management position within the organization.

As a result, to be considered as a fit and proper person in the eyes of the BoG through its directive, you ought to demonstrate diligence, integrity as well as assure that the interests of depositors are not threatened.

Meanwhile an aspect bordering on reputation, the central bank pulls the break on those whose past work have affected the industry as it says “it will require any nominee whether or not the person has held a position of responsibility in the management of a business that has gone into receivership, insolvency, or involuntary liquidation while the person was connected with that business.”

This is likely to impact managers or directors of defunct UT and Capital banks which have been absorbed by GCB Bank.

It is, however, unclear how it will impact on Unibank which is currently under the management of KPMG.

Source: citifmonline.com

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