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The change in banking policy currently underway is eroding
the role of the banking sector as a means for more rapid
and broad-based development. The change also seems to
be worsening the difficulties being faced by domestic
banks and creating new ones, leading to an increase
in fragility. Above all, there is a danger that banking
''reform'' is paving the way for a decline of domestic
control over banking operations as a result of international
takeovers, with attendant adverse implications for economic
sovereignty. Taking note of these dangers, The Independent
Commission on Banking and Financial Policy in its Interim
Report makes a series of recommendations relating to:
(a) the ownership issues; (b) the perils of consolidation
of financial institutions (c) the regulatory mechanisms;
and (d) the revival of development and social banking
to ensure broad-based credit delivery in the rural areas. |
