A banking consultant, Dr. Richmond Atuahene has backed calls for the enactment of a financial stability sector act to enhance collaboration among regulators in the financial space.
The calls for the crafting of such a law followed the three day probe by Parliament’s Finance Committee into the banking sector crisis, which unearthed the lack of collaboration among regulators in the banking, insurance, pensions and asset management as a serious loophole that must be plugged.
Speaking to Citi Business News, Dr. Atuahene said a Financial Sector Stability Act will help streamline activities among stakeholders.
“There are currently multiple regulations in this country. The regulations do not talk to themselves. When I say talk, the corporation and coordination is non-existing. Even if it exists, it exists on just a paper. That is the reason why in other jurisdiction like Kenya, in the year 2017, Kenya said we want to get away from this multiple regulations which do not talk to one other”.
“You are only looking at monitory policy, but you see we are looking at stability in the whole financial sector. The monetary policy is only looking at banking stability. But the financial stability will look at insurance, the risk there, the pension, because one of the owners of the banks was saying that government should allow pension companies invest in the banks, so that they can go and create another mess”. He stated.
Parliament’s finance committee on Friday September 7, concluded its three day in camera probe into the crisis that has engulfed, Ghana’s banking sector leading to the collapse of seven banks.
Source: Citi Business News