Question

Over the last few months, the Bank of Ghana (BoG) has cracked the whip at the banking industry in a bid to restore sanity in the industry. In August 2017, the UT and Capital Banks were liquidated for failing to meet the BoG’s minimum capital ratio. The operations of UniBank, Royal Bank, Beige Bank, Sovereign Bank, and Construction Bank ended. In their place the BoG announced a new bank called the Consolidated Bank, as part of measures to ensure the banking sector maintains a strong indigenous presence.

loans, and weak corporate governance which compelled BoG to crack the whip.

REQUIRED:

As a manager of a bank that was not closed down, what measures will you put in place to ensure that your bank will not be caught up in the same situation as the collapsed banks?

Answer 1

ANSWER:

As a manager of a bank that was not shut down, I will take the following measures so as to guarantee that my bank would not be up to speed in the same circumstance as the fallen banks-

1. I will guarantee an ideal corporate administration is available in my general hierarchical structure that is sufficiently proficient to recognize any sort of utilitarian lack.
2. I will attempt to keep up a decent nature of my benefits with the goal that they have total recuperation power even in the hour of the emergency.
3. I will attempt to cut upon pointless dangers so my exposures to the unsafe resources would be restricted and it would be favorable circumstances for banks in following with the administrative necessities and looking up with unfavorable monetary situations.
4. Loaning should just be founded on the past presentation and financial soundness of the borrower and it ought to never be founded on any sort of close to home biasness.
5. Ensuring total adjustment to the administrative system and acting in the intrigue of the partners.
6. Catching up with the money related strategies and divulgence prerequisites of the administrative power.