He said Ghanaians have lost confidence in the banking sector as a result of recent happenings.

On Wednesday, August 1, the Bank of Ghana has announced it is creating the Consolidated Bank Gh. Ltd to take over some struggling banks in the country.

The government has made GH¢450m available for the Consolidated Bank as starting capital.

READ MORE: Bank of Ghana accused of deliberately collapsing local banks

According to the BoG, The BEIGE, Sovereign and the Construction banks obtained their banking licences under false pretences through the use of suspicious and non-existent capital, whereas the Royal Bank had non-performing loans which constitute 78.9 per cent and uniBank had a capital deficit of GH¢7.4 billion compared to the regulatory minimum of GH¢400 million.

Theophilus Tettteh-Chaie said the developments will only collapse the banking sector if care is not taken.

He said "I blame BOG for all this mess happening in the banking sector. I see the banking sector collapsing because Ghanaians have lost confidence in the sector. People will be scared to go to a bank and deposit their monies. People will soon save under their beds because that will be even safer for them."

Meanwhile, a Financial Analyst, Toma Imihere has said some of the collapsed banks were only established for political purposes.

He said political parties needs finance and has the ability to influence the giving of the licenses to the banks.

Toma Imihere in an interview on Accra-based Citi FM said "These banks were given license as political patronage. It was just political patronage."

READ MORE: I didn't come to serve to enrich myself - Nana Addo

He added: "The thing is very simple. A party needs finance and has the ability to influence the giving of the licenses. So what do you do? You give the licenses in exchange for promises to get funding along the line."