Bank of Africa MD demands review of 5% financial sector clean-up levy

Managing Director for the Bank of Africa, Kofi Andah has asked for a review of the newly introduced financial sector clean-up levy of 5 percent.

The levy was proposed in the recently read budget.

According to the government, it is meant to help defray outstanding commitments in the sector following the clean-up which cost the government over GHS21 billion.

Although the government has stated that the levy will be reviewed in 2024, members of the banking association have kicked against it saying it is ill-timed.

Mr. Kofi Andah in a Citi Business News interview said he is of the opinion that the banks which survived the banking sector clean-up are being unduly punished and called for a timely review of the levy.

Mr. Andah also called for more transparency with the outcome of the banking sector clean-up.

“It will definitely lead to an increase in the cost of banking if it is not reviewed early enough”, Mr Andah said.

Mr. Andah called for transparency in issues surrounding the banking sector clean-up saying the “money used to bail out the depositors is public money, now we are supposed to pay part of it and I think it’s only fair that we know what is going on”.

Source: Citibusiness