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General News of Wednesday, 21 August 2019

Source: Class FM

Irresponsible Bank of Ghana caused banking crisis – Akufo-Addo

President Nana Akufo-Addo has blamed the Bank of Ghana for the crisis in the banking sector which led to the collapse of nine local banks as well as the insolvency and consequential licence revocation of close to 400 microfinance companies and some financial houses.

“This famous banking scandal which has engulfed all of us, if the Bank of Ghana had acted responsibly and dealt with some of these issues like it should have been done, we would have never gotten in the situation where we are now”, the President bemoaned when he met the Council of State at the Jubilee House on Monday, 19 August 2019.

“It was lax”, the President complained.

“As a result, look at the amount of money that the public exchequer on the first phase of the banking scandal; GHS13 billion, had to come from public funds to support the industry and make sure that the funds were secured”, the President noted.

The central bank recently revoked the licences of 23 more microfinance and finance houses and also warned the rural and community banks as well as other microfinance firms to recapitalise by February 2020 or face sanctions.

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