Banking Sector Clean-up was an Act of Necessity, not a Vendetta - Akufo-Addo
Accra, Ghana - 03 Jan, 2025 - Ghana's President Nana Addo Dankwa Akufo-Addo has strongly defended the banking sector cleanup initiated by his administration in 2017, saying it was a crucial intervention to prevent a catastrophic financial crisis.
In his final State of the Nation Address to Parliament, President Akufo-Addo dismissed suggestions that the cleanup was an act of vendetta, instead emphasizing that it was a bold and decisive move to restore confidence in Ghana's financial system.
The President highlighted the severe challenges facing the banking sector at the time, including widespread insolvency, liquidity crises, and blatant disregard for regulatory requirements. He noted that the cleanup was necessary to prevent a systemic collapse of the financial system, which would have had disastrous consequences for the economy.
President Akufo-Addo pointed to the success of the cleanup, citing the fact that not a single depositor lost their money, despite the challenges faced by the sector. He also highlighted the strengthened regulatory framework, improved corporate governance, and enhanced financial stability that have resulted from the cleanup.
The President's defense of the banking sector cleanup comes as his administration prepares to hand over power to a new government. While some critics have argued that the cleanup was overly aggressive, President Akufo-Addo remains adamant that it was a necessary step to ensure the long-term stability and resilience of Ghana's financial system.
“Let me at this juncture state unequivocally that the Banking Sector Clean-up undertaken by my administration was an act of necessity, not of vendetta. It was a bold and decisive intervention to safeguard the strength and integrity of Ghana’s financial system,'' he stated.
“The illegalities and irregularities perpetuated by the affected banks and financial institutions are well-documented and indisputable. These practices threatened the very foundation of our banking sector and jeopardised the hard-earned savings of millions of Ghanaians. Our actions ensured that not a single depositor lost their money—an unprecedented achievement in financial crisis management.
“Today, the results are there for all to see: a more robust, stable and resilient banking sector capable of driving economic growth and supporting the aspirations of our people. It was a necessary decision to restore public confidence and secure the future of Ghana’s financial sector,'' he added.
Source: Lead News Online
