Finance Minister, Ken Ofori Atta said the decision to allow GCB Bank takeover UT and Capital Banks was a tough one because both institutions were indigenous banks.
He told Accra-based Joy FM that the decision was a tough one because both institutions were indigenous banks.
“It was difficult [for me] because these are also indigenous firms with entrepreneurs who take risks.”
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He said he, however, had to act in the interest of the state and save the investments of “about some 300,000 or so depositors.”
“That really for me is what the Ministry should exemplify. Looking at the big issues; what is good for Ghana and then we’ll solve the little personal things that may come up.”
In August 2017, the Bank of Ghana (BoG) revoked the license of Capital and UT Banks.
The two defunct banks were taken over by GCB Bank.
According to the Central Bank, it “revoked the licences of UT Bank Ltd and Capital Bank because of the “severe impairment of their capital.”
Many attributed this to the less favourable economy in Ghana.
But Ofori Atta said the Nana Addo-led government is committed to improving the economy so that managers of financial institutions will be provided with the needed capacity to avoid things “like the DKMs to rear their head again.”
“That truly, if there had been a little bit of ‘laissez faire’ attitude in the banking sector let’s come back together and make it stronger,” the Finance Minister advised.