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Banking Sector Clean-up Was Necessary But….- Dr Patrick Assuming 1 min read

Banking Sector Clean-up Was Necessary But….- Dr Patrick Assuming <span class="wtr-time-wrap after-title"><span class="wtr-time-number">1</span> min read</span>

Dr Patrick Assuming, an Economics Lecturer at the University of Ghana Business School (UGBS) says the Banking Sector clean up was necessary.

Dr Assuming in an interview on Kumasi-based Time FM, Ama Ghana Morning Show said the illegal establishment of some banks and the services they render made it necessary for the clean-up.

Finance Minister, Ofori-Atta supervised the banking sector clean-up from mid-2017 to January 2020.

The clean-up saw a reduction in the number of banks from 34 to 23, whilst 347 microfinance institutions, 15 savings and loans and eight finance houses had their licences revoked.

While some of the commercial banks were merged to form the Consolidated Bank Ghana Limited, state-owned GCB was allowed to swallow others.

The Securities and Exchange Commission also announced the revocation of the licenses of 53 Fund Management Companies.

A number of these institutions were found to have varying degrees of corporate governance lapses.

The total estimated cost of the state’s fiscal intervention, excluding interest payments, from 2017 to 2019 was pegged at GH¢16.4 billion.

Dr Assuming told Nana Kwabena Ampratwum that the approach to the clean up was wrong.

Watch the video below…