Banking sector cleanup was essential–Akufo-Addo.

President Nana Addo Dankwa Akufo-Addo.

The President, Nana Addo Dankwa Akufo-Addo, has reiterated that the banking sector cleanup initiated by his administration in 2017 was a critical and necessary decision to safeguard Ghana’s financial stability, rather than an act of personal vendetta.

Speaking during his final State of the Nation Address (SONA) to Parliament on January 3, 2025, the President explained that the reform process was undertaken to address deep-rooted challenges within the banking sector that threatened its stability.

The cleanup, which involved the revocation of licenses for underperforming banks, mergers, and the cessation of operations for others, was aimed at restoring confidence in the financial system and protecting depositors’ funds.

President Akufo-Addo described the reform as a courageous and decisive intervention that ensured the long-term integrity and resilience of the country’s banking sector. He acknowledged the challenges faced during the process but stressed that it was a necessary step for Ghana’s economic future.

“Let me at this juncture state unequivocally that the Banking Sector Clean-up undertaken by my administration was an act of necessity, not of vendetta. It was a bold and decisive intervention to safeguard the strength and integrity of Ghana’s financial system.”

He highlighted the legalities and irregularities perpetuated by the affected banks and financial institutions, stating these these acts jeopardised the savings of Ghanaians.

President Akufo-Addo indicated that the banking sector is more robust and resilient following the clean-up exercise.

“The illegalities and irregularities perpetuated by the affected banks and financial institutions are well-documented and indisputable. These practices threatened the very foundation of our banking sector and jeopardised the hard-earned savings of millions of Ghanaians. Our actions ensured that not a single depositor lost their money—an unprecedented achievement in financial crisis management.

“Today, the results are there for all to see: a more robust, stable and resilient banking sector capable of driving economic growth and supporting the aspirations of our people. It was a necessary decision to restore public confidence and secure the future of Ghana’s financial sector.”

Source: HR Forum News