Some players within the banking industry have welcomed the passage of the Deposit Protection Bill, stating that the law will increase confidence in Ghana’s financial sector despite the low compensation package captured in it.
Parliament last week passed the Deposit Protection Bill awaiting presidential assent but the bill has received some criticisms from some stakeholders in the financial sector who have described the compensation packages as inadequate.
According to the bill, depositors in the banking category are entitled to GHS 6,250 in compensation if the bank goes under, while customers of other financial institutions such as microfinance are entitled to GHS1, 250 in compensation.
Speaking to Citi Business News at the sidelines of an event organized by UMB to host the Indian Association of Ghana, the Managing Director of the bank John Awuah maintained that all concerns raised by banks were considered before the bill were passed.
“It’s a bill for the people we had some level of banking failures in the country before. Anything that goes to protect the interest of our customer base we are all for it,” he said.
Mr. Awuah stated that with the passage of the bill customers in the financial sector will be encouraged to cultivate savings habit since they would be assured of the safety of their funds.
He maintained that the banking association adequately had its concerns and issues captured in the bill.
“We had our views addressed. The banking association was consulted and we think the bill is good for now. We endorse it as a good step”, he stressed.
He reiterated that with the current banking environment, the compensation package intended for depositors in the bill is sufficient.
UMB meets Indian Association of Ghana
Mr. Awuah made the assertions at the sidelines of an event held in Accra to educate foreign business owners on Ghana’s tax system.
The meeting which was in collaboration with the Indian Association of Ghana was aimed at educated the participants on the tax laws of the country.
Speaking on the topic, “Conquering the Tax landscape in Ghana”, Tax Analyst, Abdallah Ali-Nakyea cautioned that there is a thin line between tax evasion and tax avoidance which most often is misconstrued by business owners.
He warned that even though tax evasion is illegal, tax avoidance is legal but require expert knowledge to achieve.
He stated that there are many relief laws that exempt business owners from paying high taxes but most people are oblivious of the existence of such laws.