President Nana Addo Dankwa Akufo-Addo has assured Ghanaians persons responsible for the banking crisis would face the “full brunt” of the law.
Speaking at the Presbyterian Boys’ Senior High School’s 80th-Anniversary at Legon Saturday, he said his government would not allow ordinary Ghanaians to pay for the actions of a “greedy few, without sanction.”
A total of seven indigenous banks have collapsed over liquidity challenges blamed on mismanagement since August 2016.
They include uniBank, UT Bank, Capital Bank, Sovereign Bank, Beige Bank, Construction Bank, and The Royal Bank.
They have since been put under a new bank, Consolidated Bank Ghana Limited set up by the government in August this year.
Financial experts are predicting the collapse of nine more banks before the end of 2018 if nothing was done about the situation.
No one has been held responsible for the crisis.
But president Akufo-Addo has promised to fish out the perpetrators for sanction since the state has spent more than GH¢12.7billion to protect deposits of customers of the defunct banks.
The government issued bonds to the tune of GH¢8billion to cushion the GCB and Consolidated Banks, who took over the operations of the seven collapsed banks.
“…addition to liquidity support of some GHS¢4.7billion that had been provided by the Bank of Ghana to these banks over a period before their closure,” he added.
This brings to GH¢12.7billion the total amount of public funds spent on the seven collapse banks.
Throwing his weight behind the cleaning campaign of the Central Bank, the president said his government would rather have two high performing indigenous banks than seven weak ones.
“I have no doubt that, if these measures had not been taken, the banking system would have been seriously compromised, with dire consequences for depositors and their savings,” he concluded.