Persons culpable for collapsed banks will face the law – Akufo-Addo

Persons culpable for collapsed banks will face the law – Akufo-Addo

President Akufo-Addo delivered a speech at the 80th Anniversary of the Presbyterian Boys’ SHS President Nana Addo Dankwa Akufo-Addo, has assured the Ghanaian people that “those responsible for the sequence of activities that led to the ‘banking crisis’ will face the full brunt of the law if they are found to have broken the law”.

According to Mr Akufo-Addo, “it is not right that the overwhelming majority of ordinary Ghanaians should pay for the actions of a greedy few, without sanction.”

President Akufo-Addo made this known on Saturday, 15 September 2018, when he delivered a speech at the 80th Anniversary of the Presbyterian Boys’ Senior High School, Legon.

The President stated that “the so-called ‘banking crisis’”, and the collapse and subsequent consolidation of some indigenous banks have been caused by the cutting of corners, circumvention of the laws, flouting and non-adherence to regulations, apparently with the complicity of senior officials of the Bank of Ghana.

The inefficient and poorly managed banks, as a result, required the robust intervention of the regulatory bodies to prevent the infection of the banking sector with these acts.

As a result, under the rigorous leadership of the current Governor of the Bank of Ghana, Dr. Ernest Addison, the President indicated that a number of prudent measures have been taken to save and sanitise the banking sector.

“To protect the deposits of the seven defunct banks, the Government, through the Ministry of Finance, has had to issue bonds to the tune of some GH¢8 billion in favour of GCB Bank and the new Consolidated Bank, the banks that took over the operations of the seven failed banks,” he said.

The President continued, “This is in addition to liquidity support of some GH¢4.7 billion that had been provided by the Bank of Ghana to these banks over a period before their closure. In effect, GH¢12.7 billion of public funds has been injected into these seven banks, following their malfunction.”

Depositors’ savings, he said, have been safeguarded, job losses have been minimised, and a strong set of indigenous banks is being born.

President Akufo-Addo reiterated his commitment to having two performing indigenous banks in the country than to have seven weak ones, as recent examples of Nigeria, Malaysia and others have shown.

“I have no doubt that, if these measures had not been taken, the banking system would have been seriously compromised, with dire consequences for depositors and their savings. We need urgently a vibrant banking sector […]

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.

Leave a Reply