As the festive season approaches, Prof. Isaac Boadi, a former banker and Finance Lecturer at the University of Professional Studies, Accra (UPSA), has raised concerns over the increased demand for liquidity in banks.
He emphasized that the financial institutions must be prepared for a surge in withdrawals from individuals, companies, and institutions.
“The banks should also have a buffer, should have more liquid, so individuals, companies, institutions have the opportunity to withdraw. Because it is one thing when individuals come to the bank to withdraw and you tell the person you don’t have funds,” he noted.
Prof. Boadi’s warning extends beyond the holiday season. He highlighted that banks must also brace for heightened financial activity during election periods.
He pointed out that political parties, ports, and other institutions are likely to withdraw large sums of money during such times. “I hope the banks will be mindful that around this time, Christmas, we have excess withdrawals from the banks. And around the same period when we have elections, ports, political parties, and other institutions will like to withdraw monies from the banks as well,” Prof. Boadi stated.
The former banker’s comments come as a caution to financial institutions to ensure adequate liquidity buffers, particularly during periods of increased economic and political activity.
His insights highlight the critical role banks play in maintaining stability during high-demand seasons, urging them to prepare adequately to meet their customers’ needs.
