Banking sector clean-up was an act of necessity, not personal vendetta - Akufo-Addo

Fri, 3 Jan 2025 Source: www.ghanaweb.com

President Nana Addo Dankwa Akufo-Addo has reaffirmed that the 2017 banking sector clean-up exercise initiated by his administration was essential for safeguarding Ghana's financial stability, dismissing claims of personal vendetta.

In his final State of the Nation Address (SONA) delivered to Parliament on January 3, 2025, the President explained that the intervention addressed critical challenges undermining the sector's stability.

“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 said.

President Akufo-Addo described the clean-up exercise as a response to widespread illegalities and irregularities within the banking sector, which he noted threatened its foundation and jeopardised the savings of millions of Ghanaians.

“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 jeopardized 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," he explained.

The President underscored the long-term benefits of the reform, highlighting its role in fostering a more robust financial sector.

“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 stated.

The banking clean-up exercise undertaken by the Bank of Ghana and Securities and Exchange Commission involved the revocation of licenses for underperforming banks, mergers, and the closure of non-compliant institutions.