Patience
Gbeze, GNA
Accra, Feb. 20, GNA
– President Nana Addo Dankwa Akufo-Addo on Thursday said the clean-up exercise
in the banking sector was a difficult task, but the right thing to do at the
time to stabilise the financial sector.
He said the weak
banking sector that his government inherited from the opposition National
Democratic Congress (NDC) was now vibrant after the Securities and Exchange
Commission (SEC) and the Bank of Ghana embarked on a financial clean-up
exercise.
President Akufo-Addo
giving this year’s State of the Nation Address in Parliament reassured
Ghanaians who have their monies locked up in any of the 420 collapsed
institutions that their monies would be refunded in full.
In August 2017, the
financial sector clean-up led to the collapse of nine universal banks, 347
microfinance companies, 39 microcredit companies or money lenders, 15 savings
and loans companies, eight finance housing companies, and two non-bank
financial institutions over issues of maintaining the minimum capital
requirement.
Some banks,
including;, Construction Bank, Beige Bank, Royal Bank, uniBank and Sovereign
Bank had their licenses revoked, while some were fortunate to be merged to
operate as the Consolidated Bank with Government of Ghana having 100 per cent
shares in it.
Last year, President
Akufo-Addo granted an executive approval for the expenditure of GH¢15.6 billion
to save the funds of depositors, who had their monies locked up in the
collapsed financial institutions two years ago.
A news release from
the Presidency pointed out that the money released was expected to improve the
liquidity of the financial sector.
The President’s
address is in accordance with Article 67 of the 1992 Constitution of the
Republic of Ghana and the Standing Orders of the Parliament of Ghana.
Article 67 of the
1992 Constitution states: “The President shall, at the beginning of each
session of Parliament and before dissolution of Parliament, deliver a message
on the State of the Nation.
The address updated
the public on the government’s progress and outline plans for the next
financial year and covered, in broad terms, areas such as the economy,
education, health, security and infrastructure.
GNA