The banking sector is not in crisis as suggested by some people, Governor of the Bank of Ghana, Dr,. Ernest Addison has assured.
According to him, about 90% of industry players are operating and functioning normally.
Speaking in an interview with the Business and Financial Times, Dr. Ernest Addison described such suggestions as an exaggeration.
“When people talk about banking crisis, then it is exaggeration. 90% of the industries are operating as normal. That I think is a message that has not been properly articulated. Secondly also, the local indigenous banks are relatively stable. The indigenous banks that are having problems are those that are perceived to be badly managed with major corporate governance issues so the industry is fairly robust.”
In September this year, President Akufo-Addo emphatically stated poorly managed local banks cannot expect government support following the collapse of seven banks.
Interacting with the Ghanaian community in Rwanda, the president said that after pumping ¢8bn of taxpayer's money into these banks, its poor liquidity challenges still persisted.
"We cannot have a situation where dominant banks on the country are all foreign banks. It is very dangerous for our future".
"If our own indigenous banks are performing poorly…at the end of the day, if we don’t take care that is what will happen [ collapse]", he said. The President stressed local banks are not above the "rigorous" law of free market economics which rewards efficiency.
"The law of the market will have it that, if you are not performing efficiently you will go under."