The Ministry of Finance says the Financial Sector Clean up Exercise by government was necessary to restore confidence in the economy.
It was also very important to protect innocent clients from losing their investments. The Head, the Banking and Non-Banking Unit at the Ministry of Finance, Mr. Andy Amerckson was speaking at a forum to educate the public under the Ghana National Financial Literacy Education in Kumasi.
The forum attended by the general public, particularly businessmen and women was meant to educate them on the operations of the financial sector of the economy following the financial sector clean-up.
Following the exercise, most private sector banking institutions were closed down with their licences withdrawn when research revealed they were insolvent and cannot sustain their operations.
The intervention by government was to secure the investments of clients, save the banking sector and consequently restore confidence in the economy.
The participants were taken through the benefits of the insurance industry, developing good financial behaviour, operational differences between banks and non-deposit-taking financial institutions, as well as how to identify Ponzi Schemes.
The Head of, Banking and non-banking Unit at the Ministry of Finance, Mr. Andy Amerckson said the financial clean-up exercise has helped stabilize the economy and that apart from those who are in court, all the affected clients have been paid their investments.
The Executive Director of the Association of Micro Finance Mr Yaw Gyamfi said customer confidence in the microfinance sector after the cleanup has risen from three million to about seven million with savings and loans rising to about eight billion Ghana cedis.
The participants were grateful to the organizers and called for regular platforms for such education to protect the vulnerable against Ponzi schemes.