The planned divestiture of Standard Chartered (Stanchart) Bank Ghana PLC’s Wealth and Retail Banking (WRB) business presents the Bank of Ghana (BoG) with a critical opportunity to shape the future of Ghana’s banking sector while protecting depositors, employees and financial stability.
This is according to banking and finance expert Dr. Richmond Atuahene, who argues that the transaction should not merely be viewed as a commercial decision by one bank, but as an important regulatory exercise. With this, he maintains that it requires strategic intervention to ensure the transition strengthens rather than weakens Ghana’s financial system.
He argues that the central bank has several policy and regulatory tools at its disposal to guarantee a smooth transition while promoting local participation, safeguarding customers and preserving confidence in the banking sector.
Promote Local Ownership Through Domestic Acquisition
Dr. Atuahene believes one of the strongest options available to the Bank of Ghana is to encourage well-capitalised indigenous banks to acquire Standard Chartered’s retail and wealth banking operations.
Such an approach, he explained, would increase local ownership of banking assets and deepen the role of Ghanaian banks in serving affluent and retail customers.
Rather than allowing another foreign-owned bank to take over the business, he said the transaction could become an opportunity to build stronger indigenous financial institutions with larger customer bases and expanded market presence.
Facilitate an Orderly Transfer of Assets and Liabilities
Another option is for the Bank of Ghana to supervise the transfer of Standard Chartered’s retail deposits, loans and related assets to another licensed bank through a Purchase and Assumption (P&A) arrangement.
Dr. Atuahene explained that this would allow Standard Chartered to exit the retail segment in an orderly manner while continuing to focus on its Corporate and Investment Banking operations.
Such an arrangement would also ensure customers experience minimal disruption while maintaining confidence in the financial system.
Help Ghanaian Banks Unlock Industry Synergies
According to Dr. Atuahene, acquiring Standard Chartered’s retail business would immediately give a local bank access to an established branch network, experienced workforce, sophisticated wealth management systems, and a loyal customer base.
Instead of spending years building these capabilities from scratch, an acquiring bank would instantly expand its operations, improve efficiency and compete more effectively within Ghana’s banking industry.
Support Regional Banking Consolidation
Where a suitable domestic buyer is unavailable, Dr. Atuahene says the Bank of Ghana could facilitate an acquisition by a strong regional banking group already operating in Ghana.
Banks from countries such as Nigeria, Togo or South Africa could provide the financial strength and technical expertise required to sustain the business while maintaining customers’ access to regional and cross-border banking services.
Conduct Rigorous Due Diligence
Dr. Atuahene stressed that regardless of who acquires the business, the Bank of Ghana must undertake comprehensive due diligence under its “fit and proper” regulatory framework.
This would involve assessing the prospective buyer’s financial strength, source of funds, capital adequacy, liquidity position, corporate governance, risk management systems and operational capability.
He noted that the central bank must also ensure the transition does not trigger unnecessary market anxiety, liquidity pressures or any loss of confidence among depositors.
Protect Customers and Employees
Dr. Atuahene further recommends that the Bank of Ghana should insist on a comprehensive business continuity plan before approving any transaction.
The plan should guarantee uninterrupted banking services, protect customer deposits, preserve investment portfolios and ensure existing loan facilities continue without disruption.
He also urged the regulator to use its oversight powers to minimise unnecessary job losses during the transition, drawing lessons from the significant employment impact witnessed during Ghana’s banking sector clean-up in 2019.
Explore a Local Stock Market Listing
Another innovative option, according to Dr. Atuahene, would be for the Bank of Ghana to collaborate with the Securities and Exchange Commission (SEC) and the Ghana Stock Exchange (GSE) to spin off the retail business into a standalone Ghanaian company and list it on the local bourse.
Such a move would enable pension funds, institutional investors and ordinary Ghanaians to acquire ownership stakes in the business while keeping a significant banking franchise under local public ownership.
He believes a partial Initial Public Offering (IPO) could broaden participation in Ghana’s financial sector and deepen the country’s capital market.
Prepare for a Controlled Wind-Down if Necessary
While expressing optimism that a suitable investor will emerge, Dr. Atuahene noted that the Bank of Ghana should also prepare for the unlikely scenario where no acceptable buyer is found.
In such a case, he said the central bank should supervise a phased and orderly wind-down of the retail operations to ensure all customer deposits are fully protected, obligations are honoured and the closure does not threaten financial stability.
The Bottomline
Dr. Atuahene maintains that Standard Chartered’s planned exit from the retail and wealth banking business should be viewed not as a crisis, but as an opportunity for the Bank of Ghana to demonstrate strong regulatory leadership.
He believes that by carefully managing the transaction, promoting responsible ownership, protecting consumers and ensuring market confidence, the central bank can transform the divestiture into a catalyst for building a stronger, more resilient and more competitive banking sector in Ghana.
