In the wake of the crisis in the financial services industry and banking sector, a leading Ghanaian entrepreneur, Dr Papa Kwesu Nduom, has said the rate at which clients are redeeming their investments and making withdrawals, few investment companies and banks could survive what is happening within the sector.
Expressing serious concerns about the rate of panic redemption of investments and withdrawals by clients from the various indigenous banking and financial institutions. Dr Nduom, who is presently in the United States, asked the Bank of Ghana and all the appropriate State regulators in the financial sector to focus more attention on supporting the indigenous financial and banking sectors to overcome the current challenging trends.
In a telephone interview with the Daily Graphic yesterday. Dr Nduom pointed out that ‘When your neighbour’s house is on fire,you put water by yours.”
Using his institution Gold Coast Securities, a fully Ghanaian-owned company which started business in August 1993, as the 4th dealing member of the Ghana’s Stock Exchange, as a reflection of what was going on in financial institutions, he said ‘this year alone the company has paid out over G1IS1.3 billion of investment funds to its customers, saying
“no investment company can survive if even 2S per cent of its customers run to it to redeem their funds invested in productive activities prematurely and at the same time*.