Let’s support BOG to sanitise banking sector – President

President Akufo-Addo

President Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has urged the public to exercise restraint and support the Bank of Ghana as it takes steps to sanitise the banking sector.
He says the decision to revoke the licence of seven indigenous banks by the central bank was to restore sanity and prevent the financial sector from collapse.

Addressing the Ghanaian community in Rwanda yesterday, President Akufo-Addo said so far, the government, through the central bank had spent GH¢8billion to support the banks.

The President said it was not sustainable for the central bank to continue spending tax payers’ money on the banks and indicated that the decision to revoke the licences was the best solution to the problem.

It was the first time the President was speaking on the impasse in the banking sector since the BoG took the drastic measures to sanitise the banking sector last year.

He said as part of the measures, the Ministry of Finance had taken over the assets of five of the banks and established a state-owned bank known as the Consolidated Bank of Ghana.

According to him, the new bank, in addition to GCB, another state-owned bank, will play the lead role in strengthening the indigenous banking sector in the country.

President Akufo-Addo said although the decision might seem unpopular, it was taken in the best interest of the state and indicated that he would always take unpopular decisions if they were in the interest of the state, no matter the political consequences

He said a similar decision was taken in Nigeria some years ago to reduce the number of indigenous Nigerian banks from 80 to 11 and added the remaining banks were now part of the leading banks on the continent

 

“The oath I took was to defend the interest of Ghanaians and that guides what I do. I am a politician and I want a vote. But I am required first of all to do what is right,” he said.

 

He said the decision would also strengthen the indigenous banks to make them stronger and noted that it would be in the best interest of the country to have few strong banks than lots of poorly run banks that could not compete with the foreign banks.

BY TIMES REPORTER

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