Saturday, May 28, 2022

Gov’t didn’t intentionally collapse banks- Finance Minister states in 2020 budget

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The Finance Minister, Ken Ofori Atta, has indicated that government hasn’t intentionally collapsed any bank as is being alleged by a section of Ghanaians.

Presenting the 2020  budget dubbed: ‘Nkosuo and Nkabom’ in Parliament, Mr. Ofori Atta, indicated that “Evidence from the 2016 Asset Quality Review (AQR) of banks suggests some indigenous banks were identified to be vulnerable.. As such, Government had to intervene to protect the about 1.5 million depositors which included institutional depositors and pension funds, and to protect jobs.”

He disclosed that, the banking sector in Ghana had in the past few years been undergoing some turmoil arising from inadequate capital; high levels of Non-Performing Loans (NPLs) owing to poor liquidity and credit risk management controls; and weak corporate governance structures.

He reiterated that, those conditions underpinned these rather unpleasant but needful decisions that government took.

Government’s desire, he explained, was to ensure stability of the financial system.

He assured that, the Bank of Ghana was taking steps to ensure that all relevant parties whose actions contributed to the failure of the insolvent banks are held accountable through administrative, civil, and criminal actions as appropriate.

Over 1.5 million depositors who but for the timely intervention of Government would have lost their businesses and their life savings and deposits of over GH¢ 9 million have been saved from the ordeal, according to the minister.

The Bank of Ghana revoked the licenses of several banks and financial institutions over their inability to meet the capital requirements and failure to operate according to the rules. The action led to the loss of jobs.

Story filed by Ruth Abla Adjorlolo

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