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Business News of Wednesday, 25 September 2019

Source: Myjoyonline.com

Banking cleanup: Bawumia was right, BOG saved 4.6m depositors’ funds

The Head of the Banking Supervision at the Bank of Ghana has said 4.6m depositors were saved in a recent banking cleanup exercise.

In an exclusive interview with JoyNews, Osei Gyese said Dr Mahamudu Bawumia’s assertion is accurate.

“The banking sector is made up of banks, savings and loans, finance houses, the microfinance institutions, and microcredit institutions, and all these are affected so you need to aggregate all the institutions whose licenses were revoked across the ties and if you put all these together you get 4.6 million depositors," he added.

The Central Bank revoked the licences of nine universal banks, 347 microfinance companies, 39 microcredit companies/money lenders 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions that had already ceased operations.

Mr Gyese gave assurance that depositors who saved with these institutions will receive their locked up capital soon.

Justifying the cleanup exercise, he said the exercise has reposed confidence in Ghana's financial sector with profitability increasing.