We promised to create jobs, how then do we deliberately collapse banks? Oppong-Nkrumah

Information Minister Kojo Oppong Nkrumah has rubbished suggestions that some of the financial institutions were deliberately collapsed by the state.

Some individuals including the opposition National Democratic Congress (NDC) has slammed government for deliberately collapsing some financial institutions in the country.

This, assertion came after the Bank of Ghana announced the revocation of licences of some 23 savings and loans companies.

The affected institutions include Ideal Finance, GN Savings and Loans, First Allied Savings and Loans, ASN Financial Services, Midland Savings and Loans, IFS Financial Services, Unicredit Savings and Loans and Women’s World Banking Savings and Loans.

A statement issued by the BoG on Friday August 16, 2019 said the revocation of the licences of the institutions had become necessary because they were insolvent even after a reasonable period within which the Bank of Ghana had engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

“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 licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent,” the statement said.

The Bank of Ghana also appointed Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

The action has been criticised by some persons but speaking at a news conference in Accra, the Information Minister, Kojo Oppong Nkrumah, said such arguments against the revocation of licenses are incoherent.

“This is an administration that is promising jobs and incomes for people. Why would such an administration be interested in deliberately closing down people’s businesses when it knows that in the end it will have to answer for how many jobs that have been created or the net addition of jobs? It is not a coherent argument.”

According to him, the sanitisation of the banking sector was a priority and that the “government will continue to provide funding to the Bank of Ghana to take action in that space.”

“This is how to resolve these matters. This is how-to protect the deposits of over one million Ghanaians and over Ghc 12 billion that has gone in there.”

The central says it has ended the clean-up in the banking, specialised deposit-taking institutions (SDI) and non-bank financial institutions (NBFI) sectors.

The action saw the licences of nine universal banks, 347 micro-finance companies, 39 microcredit companies or money lenders and two non-bank financial institutions revoked.

Below is the full list of the 23 S&L companies that had their licences revoked on Friday:

  1. Accent Financial Services Ltd
  2. Adom Savings and Loans Ltd
  3. AllTime Finance Ltd
  4. Alpha Capital Savings and Loans Ltd
  5. ASN Financial Services Ltd
  6. CDH Savings and Loans Ltd
  7. Commerz Savings and Loans Ltd
  8. Crest Finance House Ltd
  9. Dream Finance Company Ltd
  10. Express Savings and Loans Company Ltd
  11. First African Savings & Loans Company Ltd
  12. First Allied Savings and Loans Co. Ltd
  13. First Ghana Savings and Loans Co. Ltd
  14. FirstTrust Savings and Loans Ltd
  15. Global Access Savings and Loans Company Ltd
  16. GN Savings and Loans Ltd
  17. Ideal Finance Ltd. Finance House
  18. IFS Financial Services Ltd
  19. Legacy Capital Savings and Loans Ltd
  20. Midland Savings and Loans Company Ltd
  21. Sterling Financial Services Ltd
  22. Unicredit Savings and Loans Ltd
  23. Women’s World Banking Savings and Loans Co. Ltd
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