After experiencing some turbulent years of banking following a switch from its primary duties as bank for local industries to a universal Bank; focusing on development and commercial banking activities, the National Investment Bank (NIB) has won the sympathy of the of the International Monetary Fund (IMF) to allow government recapitalise the ailing bank to improve its liquidity and solvency position.

Established through an act of parliament and regulated by the Bank of Ghana, the NIB bank currently has over 70% of the Bank’s portfolio made up of loans to the Ghanaian private sector. With the current economic challenges and banking crisis, analysts suggest the bank’s Non-Performing Loans (NPLs) to both government and the private sector could be higher and negatively affect its books.

However, banking consultant Dr Richmond Atuahene believes the blessings of the IMF of recapitalising the National Investment Bank (NIB) is in the right direction.

According to him, NIB needs to undergo good restructuring system from its board of directors and maintain good corporate governance. “NIB has been bedeviled with poor corporate governance practices with ineffective board composition”, Dr Atuahene said.

Dr Atuahene further warned that it would be a waste of investment on the bank’s operations, if it continues to have week corporate governance.

He expressed optimism that the IMF will supervise to ensure good governor stricture. "I am sure the IMF will make it a conditionality to ensure that a good corporate governance system is put in place as they talk about the capitalisation of the bank," Dr Atuahene asserted.

Despite some development of a possible takeover or merger of the Agriculture Development Bank (ADB) and National Investment Bank (NIB), others have called for the privatisation of the Investment Bank to enhance efficient operations of the bank.

This position, Dr. Atuahene believes that holding all factors constant, after the capitalisation of the Bank, it can be listed on the Ghana stock exchange market for some three years to attract more investors with the purpose of putting things in order. He said if the core purpose of the bank's initial establishment by Dr. Kwame Nkrumah to be a bank for local industries is no longer important at this point, then it should be listed for an improved corporate governance.

"...In 1963 and 1965 Dr. Kwame Nkrumah said I needed ADB to look at Agriculture and NIB to look at industries, unfortunately in 2003, we did the universal banking concert, where they can become jack of all trade and master of none, if we want to sell it, how are we selling as a development bank or a universal bank?," Dr Atuahene quizzed.