Prince Kofi Amoabeng has shared profound insights on the current state of Ghana’s banking sector in a recent interview on PM Business with George Wiafe, monitored by MyNewsGh.
The former CEO of the defunct UT Bank, reflecting on his experience, expressed concerns about the over-reliance on raising minimum capital as a solution to the sector’s challenges.
He noted that the real issue lies in the banks’ capacity to grow organically, something that isn’t addressed by simply increasing the minimum capital requirement.
Amoabeng also discussed the inefficiencies within the judicial system, which he believes have a significant impact on the banking sector.
“Recovery cases can take years to resolve, even when all evidence is clear,” he remarked. He suggested that courts need to set strict timelines for such cases to prevent further damage to businesses.
When reflecting on UT Bank’s eventual collapse, Amoabeng drew a parallel with the sinking of the Titanic, saying that multiple factors—ranging from internal cultural issues to external regulatory challenges—converged to bring down the bank.
He recalled the decision to acquire a bank instead of starting from scratch, recognizing the hurdles they faced in obtaining a banking license. This decision, he believes, was crucial to UT Bank’s success, but also to its downfall.
In addition to his reflections on the banking sector, Amoabeng also shared the journey behind his three-part book series.
The third volume, he believes, holds the most valuable lessons, detailing how the bank was built and the factors that led to its eventual collapse.
