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A/R: Bank of Ghana Petitioned to close down some banks at Race Course, Kumasi.

 

 

By:brightwebtv.com/Martin awuku

The Concerned Voters Movement (CVM) respectfully would like to appeal to the Bank of Ghana to close down the respective Branches of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama, Kumasi in the Ashanti Region in accordance with Section 16 and Section 25 of the Act 930 Banks and Specialised Deposit-Taking Institutions Act, 2016, and other banking and financial regulations.

 

 

 

The Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited are using unsafe Containers as their respective Branches at Race Course Area at Bantama, Kumasi which contravenes the Laws, rules and regulations of Bank of Ghana. The Unsafe Containers are a threat to Depositors, Depositors Cash, Staff, Customers and Potential Customers of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited.
According to Section 7 of the Licensing Requirements for Savings and Loans and Finance Houses, the Savings and Loans Company is mandated to demonstrate its readiness to commence business by ensuring that its:

 

 

 

Premises has
(a). sufficiency of title deeds/lease agreements
(b). approvals by relevant authorities
(c). adequacy of business premises, staff operating area, ventilation, lighting etc. and
2. Security of premises including adequacy of alarm systems, fire extinguishers, vaults or safes, etc.
According to Section 6 of the Guidelines for Rural Banking Licence, the applicant for rural bank licence is required to do an acquisition and refurbishment of suitable premises for banking business and accommodation for the Manager; and also in accordance with Section 7, the Bank of Ghana is required to ensure that the rural bank has satisfied the organizational and infrastructural arrangements of the Bank of Ghana.
The Bank of Ghana under Section 16(1) of the Act 930 Banks and Specialised Deposit-Taking Institutions Act, 2016 may revoke a Licence issued under Section 12 where the Bank or specialised deposit-taking institution carries on business in a manner which is contrary or detrimental to the interests of depositors or the public.
The premises of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama, Kumasi are clearly unsuitable premises to do business. The premises of these two financial institutions are detrimental to the interests of depositors and the public.
It is equally important to state that, in accordance with Section 25 (Places of business to be licensed) of the Bank of Ghana under Section 16(1) of the Act 930 Banks and Specialised Deposit-Taking Institutions Act, 2016, Bank of Ghana is mandated to license premises of Banks and Financial Institutions.
According to Section 25 of Act 930 Banks and Specialised Deposit-Taking Institutions Act, 2016:
A bank or specialized deposit-taking institution shall not carry on a deposit-taking business at a place other than a place authorized in accordance with Act 930 Banks and Specialised Deposit-Taking Institutions Act, 2016.
A bank or specialised deposit-taking institution shall not open, close or relocate
a branch
an agency
a mobilization centre
the head office
any other operational or support centre or office,
for purposes of carrying on a deposit-taking business unless specifically authorized by the Bank of Ghana.
A bank or specialised deposit-taking institution which contravenes this Section is liable to pay to the Bank of Ghana an administrative penalty of one thousand penalty units.
In addition to the penalty presented in sub-section(3), the Bank of Ghana may suspend the operations of the branch, agency, mobilisation centre, head office or other operational or support centre of the Bank or specialised deposit-taking institution involved until the bank or specialised deposit-taking institution obtains approval from the Bank of Ghana.
The leadership of Concerned Voters Movement (CVM) would like to respectfully seek answers from Bank of Ghana to the following important critical questions:
Has Bank of Ghana authorized the branches of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama, Kumasi, Ashanti Region in accordance with the laws, rules and regulations of the Bank of Ghana?
Is Bank of Ghana satisfied with the premises and security of the branches of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama, Kumasi, Ashanti Region in accordance with the laws, rules and regulations of the Bank of Ghana?
Is Bank of Ghana satisfied with the organizational and infrastructural arrangements of the branches of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama in accordance with the laws, rules and regulations of the Bank of Ghana?
After issuance of Licence, does Bank of Ghana continue to check the premises or branches of Banks, Savings & Loans Companies and other deposit-taking institutions to ascertain whether they are complying with the terms and conditions of their respective licence?
Is it permissible by law, rules and regulations of Bank of Ghana for Banks, Savings & Loans Companies and other deposit-taking institutions to use Unsafe Containers as their Branches or mobilization centre?
To enhance the legal and regulatory framework, the Bank of Ghana supervisory functions are designed to be consistent with the Basel Core Principles for Effective Banking Supervision. Also the mandate of Bank of Ghana includes some of the following:
To ensure that Depositors’ funds are safe
Adherence to statutory and regulatory requirements is enforced
We would like to urge the Bank of Ghana to compel Multi Credit Savings & Loans Limited, Yaa Asantewaa Rural Bank Limited and other deposit-taking Institutions to acquire a proper housing facility when opening branches in order to protect depositors, funds of depositors and their own Staff.
As part of strategic marketing and branding to attract depositors, potential customers and retain clients as well as ensure business expansion, CVM would like to respectfully urge Multi Credit Savings & Loans Limited, Yaa Asantewaa Rural Bank Limited and other deposit-taking Institutions to acquire proper housing facility for their branches. Packaging is very essential in attracting and retaining customers, and also helps in staying relevant in the competition in the marketplace.
Henceforth, we would like to urge the Bank of Ghana to close down the of the branches of Multi Credit Savings & Loans Limited and Yaa Asantewaa Rural Bank Limited at Race Course Area at Bantama, Kumasi in Ashanti Region since their Unsafe Containers used as premises are unsafe to depositors fund and depositors themselves due to the porous security nature of the area.

Unsafe Containers used as Branches for Multi Credit Savings & Loans Limited, Yaa Asantewaa Rural Bank Limited and other deposit-taking Institutions are not good for:
Corporate image
Good Corporate governance
Security of Depositors
Safety of Depositors Funds
Safety of Staff
Respectfully, we would like to equally appeal to Bank of Ghana to streamline the activities and operations of Savings and Loans Companies and Rural Banks to conform to the terms and conditions of their respective Licenses as well as the Laws, rules and regulations of Bank of Ghana.
We do hope that the Bank of Ghana would address our concerns within the shortest possible time.
For and on behalf of the Concerned Voters Movement (CVM)
………… Signed…………
Razak Kojo Opoku
(Founder and President)
Tel:0542563033
Email:cvmghana@gmail.com

cc. 1st Deputy Governor, Bank of Ghana
2nd Deputy Governor, Bank of Ghana
Secretary to the Board, Bank of Ghana
Head, Banking Supervision Department, Bank of Ghana
Ministry of Finance
ARB Apex Bank

 

Source:brightwebtv.com/Martin awuku ­

 

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