Banking sector cleanup saved over 4.5m customers from losing their deposits

Finance Minister-designate Ken Ofori-Atta has intimated that the banking sector cleanup saved about 4.5 million customers of affected institutions from losing their deposits. He, however, revealed that a total of GH₵ 21billion was spent on the exercise that, he says, strengthened the banking sector.

“We think we have done the best that the country deserves and the results show that. We have a much stronger banking sector now than we had in 2017,” he said.

He made this comment Thursday, during his vetting in Parliament.

The banking sector cleanup according to government was introduced to check mismanagement at the affected financial institutions.

The move led to depositors’ funds being locked up.

The Consolidated Bank Ghana (CBG) which is a merger of the collapsed banks was subsequently established. Giving a breakdown of the said amount, Mr Ofori-Atta in an earlier interview stated that a total of GH¢13.6 billion (3.5percent of GDP) has been spent on the resolution of failed banks, Specialised Deposit-taking Institutions (SDIs), Micro Finance Institutions (MFIs), the establishment of the Consolidated Bank Ghana Limited (CBG), as well as the capitalisation of the Ghana Amalgamated Trust (GAT)”.

Source: Goldstreet Business