A professor of Accounting and Finance at the University for Professional Studies, Isaac Boadi, has asserted that no president is clothed with the power to issue banking licenses since that is the job of the Bank of Ghana.
Speaking on Asaase Radio’s political and current affairs show “The Forum” on Saturday, 31 August 2024, the expert on finance and accounting said that the manifesto pledge of the opposition National Democratic Congress to the effect that the licenses of some revoked banks would be restored is only wishful thinking.
“It is impossible for any president to issue banking licenses or restore revoked ones. That falls under the purview of the Bank of Ghana, and not the president of the day” Professor Boadi indicated.
The Dean of Accounting and Finance at UPSA believes that the pledge came from an uninformed position because it does not lie in the mouth of a president to revoke the revocation of licenses of defunct financial institutions.
“The licenses of those banks were revoked based upon the laws governing banking operations. The law courts have affirmed the decisions of the central bank, thereby making it impossible for any president to review such decisions” he added.
The flagbearer of the opposition National Democratic Congress, John Dramani Mahama, at the launch of the party’s manifesto on Saturday, August 24, 2024, promised that if given power, he will restore the revoked banking licenses to their owners to boost the sector.
His pledge, however, has been widely criticized by experts in the banking and financial sector. They have questioned him about the rationale behind the decision and the fact that such a decision cannot be taken by a president since it falls under the jurisdiction of the Bank of Ghana.
“Is the former president saying that he will restore these licenses to these people for them to come and collapse the banking sector like they nearly did? This is not a wise proposition. In any event, he has no such right to restore those licenses” a financial analyst had this to say.
Professor Isaac Boadi admonished the former president to desist from such pledges since the repercussions of same can cost the country much more than the current situation the sector finds itself.
“We must not make such statements and promises just to win elections since there is no way such a promise can be fulfilled. The laws simply do not give the president that leeway to issue banking licenses or review the revoked ones” Professor Boadi stated.
Reporting by Wilberforce Asare in Accra
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