Accra:The Cabinet has overruled a directive from the Bank of Ghana that ordered the immediate cessation of business by the "wonder banks." Instead, the Bank of Ghana has been asked to grant Pyram, Resource 500, and Christian Benefit Business Centre—a trio of non-banking institutions—a two-month grace period to align their operations with existing laws.
According to Ghana Web, the decision aims to prevent these institutions from using the Bank of Ghana's stoppage order as an excuse not to fulfill their obligations to their clients. The Ministry of Information, in a press release, stated that the Cabinet had reviewed differing positions from the Ministry of Finance and the Bank of Ghana regarding the operations of these entities.
The Cabinet emphasized that ensuring the safety of depositors' funds should be a primary concern. It also noted that the interest rates being offered by these non-banking institutions are unsustainable in the long term.