Ghana saved $2 billion in a new intervention it brought into the banking sector

Ghana has saved $2 billion due to the recapitalisation policy the Bank of Ghana enrolled within the year.

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison

The bank credited the achievement to the recapitalisation requirement it brought about during the year.

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison revealed that the orderly intervention and revocation of the licenses of under-performing banks, as well as the purchase and assumption transactions, ensured that about 70 per cent of the 5,000 jobs in the affected banks were saved.

He was speaking at the annual dinner of the Chartered Institute of Bankers -Ghana in Accra, the capital of Ghana.

Mr Addison disclosed that the level of related-party transactions that became so endemic in the banks which the BoG resolved has informed their (BoG) decision to operationalize the directive on financial holding companies next year.

The operation will facilitate effective consolidated supervision of regulated financial institutions and ensure that holding companies and affiliates of banks and specialized deposit-taking institution (SDI) do not take advantage of banks whiles the depositors and other creditors are disadvantaged.

According to the governor, the government had indicated that it would set up a high-level financial stability council with a key objective of bringing together all financial sector regulatory bodies and the Ministry of Finance to work together to minimize, if not eliminate, regulatory arbitrage and other sector-wide risks.

Adding that “there is the need for more regulatory and supervisory vigilance to properly safeguard the new banking system after the reforms”.

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