Collapse of Silicon Valley Bank should serve as a warning to us – KPMG Senior Partner

MyJoyOnlineMar 17, 2023 11:10 AM

Senior Partner at auditing and accounting firm, KPMG Ghana, Anthony Sarpong has advised the Bank of Ghana and other central banks in Africa to see the collapse of banks in developed countries as a warning to the banking industry to avert a similar situation in the future.

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According to him, one of the ways to prevent the collapse of banks is to maintain adequate liquidity to meet customer withdrawals.

Speaking in an interview with Joy Business on the back of the collapse of US bank, Silicon Valley Bank and other bigger financial institutions, he said the failure of those banks is a clarion call that must not be overlooked.

He however expressed confidence that the measures taken by the Bank of Ghana to support banks in the ongoing debt restructuring programme will help in dealing with any such potential risks.

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“You noticed that the regulator has taken swift action to contain the effect of what is happening in the United States on the banking sector and any potential spill-over. So we won’t expect any effects”.

“However, it’s a developing situation and therefore must be watched with caution so that the fear it triggered in the US does not have a negative impact on Ghanaian banks as we go through our own challenges, he explained.

Furthermore, Mr. Sarpong urged the Bank of Ghana to ensure sufficient liquidity in the banking industry.

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“The main area is to ensure sufficient liquidity of the banks, and the Bank of Ghana has assured of liquidity support to our banks. So one will be sure that we won’t go through a similar situation as we go on with our own debt restructuring”..

On March 10, Silicon Valley Bank, one of the most prominent lenders in the start-up ecosystem, collapsed. Federal regulators