7 failed banks swallowed GHS12.7bn of taxpayers’ money – Akufo-Addo

 

President Nana Akufo-Addo has said a total of GHS12.7 billion of taxpayers’ money, was pumped into the seven local banks which eventually went under.

The seven banks went bust within a space of one year – from August 2017 to August 2018.

They include UT Bank, Capital Bank, uniBank, Sovereign Bank, The Royal Bank, The Beige Bank and The Construction Bank.

The first two went under in August 2017.

The other five went bust two weeks shy of a year after the first two failed.

UT Bank and Capital Bank were taken over by GCB Bank while the last five were put together by the Bank of Ghana to form the all-new Consolidate Bank Ghana Limited (CBG).

It is estimated that about 2,000 staff will be retrenched.

Speaking at the 80th anniversary celebratory durbar of one of the country’s finest secondary schools, Presbyterian Boys’ Senior Secondary School, Legon, about the work of the central bank in purging the sector, Nana Akufo-Addo, who is on a four-day tour of the Central Region, said: “Under the rigorous leadership of the current Governor of the Bank of Ghana, Dr. Ernest Addison, a number of prudent measures have been taken to save and sanitise the banking sector”.

“To protect the deposits of the seven defunct banks, the government, through the Ministry of Finance”, the president noted, “has had to issue bonds to the tune of some GHS8 billion in favour of GCB Bank and the new Consolidate Bank Ghana Limited – the banks that have taken over the operations of the seven failed banks.

“This is in addition to liquidity support of some GHS4.7 billion that had been provided by the Bank of Ghana to these banks over a period before their closure.

“In fact, GHS12.7 billion of public funds has been injected into these seven banks following their malfunction. Depositors’ savings, however, have been safeguarded; job losses have been minimised and a strong set of indigenous banks, is being born”, the president asserted.

In the president’s view, “…It is better to have two performing indigenous banks than to have seven weak ones, as recent examples of Nigeria, Malaysia and others, have shown.

“I have no doubt that if these measures had not been taken, the banking system would have been seriously compromised with dire consequences for depositors and their savings”, he noted.

 

Source: classfmonline.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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