Business News of Sunday, 21 October 2018
The panic that has hit the financial sector in the wake of the collapse of some indigenous banks in the country, has resulted in customers trooping to their banks to withdraw their savings and investments.
GhanaWeb has sighted some videos on Facebook where some customers of Gold Coast Fund Management, a subsidiary of Groupe Nduom besieged the premises to demand their money.
The videos which were shared by one Felicity Nelson on Saturday showed a staff of the bank trying to convince a woman seated on the floor that her money was safe, but the woman would not hear of it.
“We are here suffering, and you are in a meeting from Tuesday up to Friday…” she said with tears in her eyes.
Another video shows the same woman with some other customers descending heavily on a staff of the bank whose words seems to have infuriated them.
“Do you know why we are here…..it is the same money that they use to pay you….clear off,” one of them was heard saying.
A staff of the company who tried to calm the nerves of these angry customers said, “let’s try to solve this thing out amicably so that it doesn’t generate into any other thing….I can’t see my fellow human being sitting on the floor because her money is locked up over here”.
The Founder of Groupe Ndoum earlier this month appealed to customers of his bank, GN Bank and Gold Coast Fund Management to cease panic withdrawals that have hit the bank in recent times.
Dr Papa Kwesi Ndoum noted that his bank is financially sound and the panic withdrawals would rather affect the bank. He told traders at the car parts retail market at Abossey Okai in Accra, the panic withdrawals have kept him awake at night.
“I’ve had sleepless nights for the past few weeks because of the panic withdrawals,” he lamented.
He explained that when depositors bring their monies to banks, what the banks do is to invest the money and also loan those monies out to contractors and business folk.
“So when 20% or even 15% of the depositors decide one day that they’re going to withdraw all their money, then we are going to have a problem,” he said.
He added that the banks keep some of the money to transact day to day business while some are kept with the central bank “so when there are panic withdrawals, it affects you negatively and the most immediate problem is you run into liquidity challenges”.
Gold Coast Fund Management is an investment-banking firm specialized in Fund Management, Capital and Money Market, Asset Management, Equity Market Research, Pension Advisory and Financial Advisory Services.