Akufo-Addo speaks about the collapse of the 7 local banks

Akufo-Addo speaks about the collapse of the 7 local banks

- President Akufo-Addo has explained why 7 Ghanaian banks have been collapsed

- He expressed fears about the growing presence of foreign banks in Ghana

- He added that the move is to ensure that the local banking industry is strengthened

Ghana’s president, Nana Akufo-Addo, has spoken for the first time about the collapse of seven local banks.

Interacting with the Ghanaian community in Rwanda’s capital, Kigali on Thursday, September 6, 2018, President Akufo-Addo stated that there was an urgent need to act consolidate the banks.

He dispelled the notion that the government intends to collapse local banks, and explained that the dominance of foreign banks in Ghana is a worrying situation.

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According to him, “we cannot have a situation where the dominant banks in our country are all foreign banks. It is very dangerous for our future if we allow that to happen.

But if our own indigenous banks are performing poorly, at the end of the day, we do not take care, one by one, they will all go under.”

He went on to say that there is the need to ensure that the local banks are strengthened in order to compete with the foreign banks.

“...I am a politician, I want the votes, but I think that I’m required first of all to do what I consider right for our people than worry myself about the impact of it on my political support,” the president said.

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His comments were in reaction to a trending perception that the collapse of seven local banks is an attempt by the government to make way for the personal interests for some government officials.

The Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo, is reported to have earlier accused Finance Minister Ken Ofori Atta of working together with the Bank of Ghana and the Security and Exchange Commission to collapse banks that are competing with Databank Financial Services in the financial sector.

UT Bank and Capital Bank were taken over by the state-owned GCB Bank in 2017 due to their liquidity challenges as well as breaches of banking regulations.

In 2018, Beige Bank, Sovereign Bank, Construction Bank, uniBank, and Royal Bank were merged into the state-owned Consolidated Bank of Ghana.

The five banks, according to the Bank of Ghana, had become highly insolvent.

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Source: Yen.com.gh

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