Last year, the Bank of Ghana(BoG) collapsed several banks. A few weeks ago, a number of microfinance and saving and loans institutions were also collapsed. Since then, several personalities of finance and banking have been fingered as being part of the many reasons why the institutions were collapsed.
A section of Ghanaians has in particular pointed accusing fingers at the former minister of finance, Mr. Seth Terkper. They accuse him of not doing much to save the situation during his tenure as the minister of Finance.
The former Finance Minister has however stated that he cannot accept the blame for the circumstances that led to the collapse of some of the local banks. According to Mr. Seth Terkper, several laws and regulations were put in place in order to regulate the financial sector when the National Democratic Congress (NDC) was in office.
During an interview on one popular Tv station in Accra, the host asked whether he will take the blame for the collapsed banks, his reply was, “No.” “We passed the requisite laws” to regulate the sector and “I don’t see why I should accept the blame.”
Readers will recall that Seven local banks were collapsed by BoG during the banking sector cleanup exercise. The banks were uniBank Ghana Ltd, the UT Bank, the Capital Bank, the Royal Bank, the Construction Bank, the Beige Bank, and the Heritage Bank.
Operating licenses of twenty-three (23) Microfinance Institutions were also revoked. They included Unicredit Savings and Loans, Adom Savings and Loans, Midland Savings and Loans, Ideal Finance and Dream Finance Company, GN Savings and Loans, Accent Financial Services Limited, All Time Finance Limited, Alpha Capital Savings and Loans, ASN Financial Services Limited, CDH Savings and Loans Limited, Commerz Savings and Loans, Crest Finance House Limited, Dream Finance Company Limited, Express Savings and Loans Company, First African Savings and Loans Company, First Allied Savings, First Ghana Savings and Loans Company, First Trust Savings and Loans, Global Access Savings and Loans Company Limited, IFS Financial Services, Legacy Capital Savings and Loans Limited, Sterling Financial Services, Women’s World Banking Savings and Company Limited.
In a statement, the BoG explained that: “These actions were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana appointed Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.