Dr. Akwasi Atuahene, a Banking consultant, speaking on the Bank of Ghana directives, has stated that the banks were milking the customers. He therefore, called on the Bank of Ghana (BoG) to punish financial institutions that fail to implement its new directives to let Banks and Special Deposit-taking Institutions (SDIs) abolish unfair fees, charges and other practices.

Speaking on the issue, Dr. Atuahene urged the various banks to adhere to the directive as unsuspecting customers have been ripped off for a very long time.

“Some customers are ignorant, and they [banks] know we cannot report them to anyone and even if you report, it was going to take a long time. They were debiting customers GHS5 or GHS10, and they make huge profits. Meanwhile, the person has made deposits on their accounts, and you are using the same money to trade. So the banks are not being fair to their customers. I think the Bank of Ghana is only telling them now that they have to be fair to customers. It will be good for customers. The banks were milking people.”
Dr. Atuahene

Moreover, Dr. Atuahene commended the Bank of Ghana for the directive as he described the directive as the best decision to safeguard the interest of the depositors. “It is a step in the right direction and must be enforced to the letter. And if people report any deviant to them, they should take action against any of such bank.”

The Bank of Ghana Directive

It will be recalled that the Central Bank in a statement on Friday, June 18, 2021, directed banks and Specialized Deposit-Taking institutions to desist from implementing seven different fees and charges, and also stop engaging in some practices that do not auger well for the banking sector.

According to the Bank of Ghana, “these practices are deemed to be unfair, inappropriate and detrimental to the financial inclusion agenda and the protection of customers’ interest.”

The fees and charges, and practices which are identified by the central bank as unfair include, Credit Insurance Premium Overcharges, Maintenance Fees on Savings Account, among others, Over the Counter (OTC) Withdrawal Charges as well as the requirement by some banks for borrowers to make them part owners in some assets they present for use as collateral for loans.

In addition, the other charges the Bank of Ghana wants to be abolished is the quotation of monthly interest rates on credit facilities and third party deposit/withdrawal violations. However, BoG said the practice is detrimental to the credit market.

The observation made by Dr. Atuahene is in line with the mandate of the Bank of Ghana to deal with unlawful or improper practices of banks and SDIs under Section 3 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and to ensure that appropriate punishment is meted out to banks that go contrary. This will help to ensure that the interest of customers of banks and SDIs are adequately protected