Akufo-Addo approves GHC15.6 bn expenditure to strengthen financial sector

Business News of Sunday, 8 December 2019

Source: citinewsroom.com

2019-12-08

Ken Ofori-Atta, Finance Minister

President Akufo-Addo has approved a GH?15.6 billion requests by the Finance Minister to support the financial sector.

According to a statement sighted by Citi News, the amount is to protect depositors and investors of the failed financial institutions as well as improve the liquidity of the sector.

The Banking sector has since 2017 seen series of clean up exercises carried out by the Bank of Ghana and the Security and Exchange Commission.

So far, the sector has seen the collapse of over 400 financial institutions.

The Finance Ministry, therefore believes that the requested amount will give the necessary support the sector requires to bounce back on its feet and be stronger.

Financial sector clean-up

The financial sector clean-up, commenced by the Akufo-Addo administration in August 2017, has led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions over issues of maintaining the minimum capital requirement.

The most recent has to do with the Securities and Exchange Commission (SEC) revoking the licenses of some 53 Fund Management Companies.

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