President defends financial sector clean-up

President Akufo-Addo cutting the tape with Frank Adu Jr. (left), Managing Director, CalBank President Akufo-Addo has justified the decision of the Bank of Ghana (BoG) to sanitise the country’s banking industry which has led to the merger of a number of local banks.

Speaking at the commissioning of a new head office building of Cal Bank yesterday in Accra, President Akufo-Addo said that “the measures taken saved the banking industry from a very dire situation characterised by the existence of several weakly capitalized banks, balance sheets entangled by a multitude of low performing loans, bad business models with poor governance practices and largely non-existent Central Bank regulation.”

Apart from that, he insisted that “those measures saved not only the deposits of some one and a half million Ghanaians, their businesses and the people they employ but also minimised job losses in the banking sector.”

Cal Bank was the only local bank that met the BoG’s GH¢400 million threshold without any capital injection.

He lauded Cal Bank for embracing best practices over the last 30 years to become one of the best performing banks in Ghana.

According to him, the decision by his administration to reform the banking sector of the country two years ago had paid off greatly as a result of the growth the banking sector was currently experiencing.

The President pledged that his administration would ensure the protection of a vibrant banking and financial sector to enhance the rapid growth of the economy, especially one that foster good paying jobs for the citizenry.

Governor of the BoG, Dr Ernest Addison commended the board, management and staff of Cal Bank for opening the new office complex.

“I encourage the management and staff to continue to maintain the highest standards of integrity, particularly in the area of corporate governance to maintain public confidence in the Cal Bank.

Paarock A. Vanpercy, Chairman of the Board of Directors and Frank Brako Adu Jnr, Managing Director of the Cal Bank both addressed the gathering and reiterated Cal Bank’s commitment to serving the customers effectively.

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