President Nana Addo Dankwa Akufo-Addo has reiterated the importance of banks in Ghana to develop strategic transformational policies to help sustain the economy.
According to him, the Bank of Ghana is rather making sure that the banking sector is strengthened.
On Wednesday, August 1, the Bank of Ghana has announced it is creating the Consolidated Bank Gh. Ltd to take over some struggling banks in the country.
Royal Bank, Beige Bank, Sovereign Bank, Construction Bank, and uniBank are the financial institutions that have run into liquidity challenges.
The government has made GH¢450m available for the Consolidated Bank as starting capital.
Earlier, two banks, UT Bank and Capital Bank were taken over by the Central bank.
UT Bank and Capital Bank were taken over by GCB Bank while the last five were put together by the Bank of Ghana to form the all-new Consolidated Bank Ghana Limited.
But the President who expressed frustration while interacting with the Ghanaian community in Rwanda said “There has been some controversy in Ghana over, for instance, the situation in the banking sector and you’ve heard about it.
“The decision that the central bank has taken which has affected seven important indigenous banks who were being supported by the taxpayer through the Bank of Ghana.
“Altogether, the indebtedness of these seven banks amount to some GHS8billion that the Bank of Ghana used to support these banks.
“That’s not – I’m sure – medium- or long-term solution that we can support; that the bank of Ghana will be taking taxpayers money to support inefficient, poorly managed bank.”
He stated that “We are trying to make sure that the banking sector of the country has strong indigenous banks which can compete successfully with foreign own banks.
“It’s not a question of we are going through a process in order to eliminate the indigenous banks from the banking system of our country; that’s very dangerous, it won’t make sense to do that at all.”
“On the contrary, the process of rationalisation is to enable us to emerge with the strongest set of indigenous banks who can then help grow our economy,” Nana Addo added.