https://citifmonline.com/2018/03/10-reasons-bog-took-unibank/ Ghana News | Ghana Politics | Ghana Soccer | Ghana Showbiz Thu, 22 Mar 2018 16:37:00 +0000 hourly 1 https://wordpress.org/?v=6.0.8 https://citifmonline.com/2018/03/10-reasons-bog-took-unibank/#comment-14526 Thu, 22 Mar 2018 16:37:00 +0000 http://citifmonline.com/?p=411453#comment-14526 I am no Expert but I strongly think it is time the BoG introduces what is called the “Transaction Verification Code-(TVC)” into the Financial Environment especially in our Banking sector. I think the main issue in the Banking sector now is inaccurate data sent to the BoG by top managers. This always mislead the BoG officials. In-fact, there are several reasons top managers will always present inaccurate data to their supervisors (Which I will skip for now). Let me concentrate on TVC.
Think of TVC as a barcode, or serial number, or a simple phone number, or a name. These are unique numbers. This identify a product, an activity, a connection (network) or a person respectively. All Banks have these numbers generated after a transaction is made by their Banking Software. At times these are part of the SMS sent to the client. These special codes helps the Bank make audit and understand each transaction from another. This special numbers are in the control of the Bank only and not the Central Bank.
In times of reporting to the BoG, a bank can manipulate its database to match their case as expected (painting a positive picture). The BoG is only made known of the actual cases most atimes when the Bank becomes naked (where it can not fulfill its Liabilities).
I think the simple approach to avoid this challenge is to transfer the Ownership of TVC from Banks to the BoG. In other words, every transaction made by a Bank must have a TVC generated and/or verified by the BoG. This will include Deposits, Withdrawals, Loans given, Loans Payments, etc. That is, the BoG will have the same vital primary data as that of the Banks. In simple words, BoG can get accurate data as at when it is required. Banks that report inaccurate data can easily be identified and necessary actions taken when required. Client confidence in the Banking sector will be positive since they can accept the fact the their funds are monitored by BoG.
If this is approach is accepted, we must prepare for implementation. There are multi-methods to implement this approach. We just have to think ahead and settle on one. We may consider these methods;
1: API’s to be designed and shared with the BoG by the Banking Application Vendors.
2: API’s or special verification system to be designed by BoG and shared with Banks to integrate in the Banking Applications.
In each case, the TVC must be made available to clients per their transactions with the Bank. A platform must be made available for client to verify the TVC with the Central Bank anytime. The Central Bank will have a responsibility to identify vital data that is required for the API design (Please understand that the BoG will not reinvent or monopolize Banking Applications. This is not the purpose).
We must understand that our Banking laws are limited and must take necessary steps to amend them accordingly to take care of Technological changes. I am positive that the Financial sector will surely be effective if we adopt some technological measures to face the challenging times.

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