Vice-president Bawumia's predictions about failing banks come to pass

Vice-president Bawumia's predictions about failing banks come to pass

- Dr Bawumia made the prediction in 2016 and it seem to have come to pass

- So far, seven banks have colla[sed or been forced to merge with other weakened banks

Former deputy of the Bank of Ghana and current vice-president of Ghana, Dr. Mahamudu Bawumia in 2016 made a claim that 8 local banks were on the verge of collapse. The then-running mate to the New Patriotic Party's (NPP) Nana Akufo-Addo was emphatic in his declaration.

Two years on, Dr Bawumia's prediction seems to have come to unfortunate fruition. Early this year, UT bank and the Mansa-Otabil-led Capital Bank both folded due to financial weakness.

Just a week ago, five other other banks were forcibly merged by the Bank of Ghana (BoG). They were UniBank, The Construction Bank, The Royal Bank , Sovereign Bank and Beige Bank.

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Bawumia mysterious prophecies

Consolidated Bank Ghana is the result of five merged banks. Photo credit: Supplied

A total of seven banks are now down underwater. The identity of the 8th bank in Bawumia's predictions is unknown although the likes of GN Bank and Sahel Bank have also talked about the possibility of merging.

Dr Bawumia while delievering a lecture in 2016 said:“The asset quality review of banks, conducted in 2015, shows significant vulnerability of banks to current economic conditions and that if the affected banks were to fully provision for all the bad loans, a significant number of them will collapse."

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The Bank of Ghana, in its first financial stability report for 2016 revealed that bad loans on the books of commercial banks in the country increased by 14.9 percent.

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