Accra, Ghana, August 15, 2019//-The Bank of Ghana (BoG) today issued a stern warning to banks and Specialized Deposit-taking Institutions (SDIs) to desist from taking facilitation and business development fees or any other fees from their customers henceforth.
According to the central bank, “The practice had the tendency to increase the “Cost of Funds” of institutions, which invariably was passed onto customers through high lending rates”.
“The Bank of Ghana observed, during the banking industry clean up exercise, a practice whereby facilitation/business development fees or some other payments are made to agents who assist in the mobilization of Wholesale Deposits, particularly from the public sector”, a notice issued by the Secretary of BoG, Mrs Frances Van-Hein Sackey said.
It should be noted that any institution which fails to comply with this Notice shall be severely sanctioned, the statement warned.
The BoG drew the attention of banks and SDIs to Section 16 (1) (f) of the Banks and Specialized Deposit-Taking Act, 2016 (Act 930) which gives the Bank of Ghana authority to revoke the licence of any institution which in the judgement of the Bank of Ghana, is deemed to be engaged in unsafe or unsound banking practices.
“All Banks, SDIs and the general public are to take note of the above and be guided accordingly”.
African Eye Report
