https://www.myjoyonline.com/we-cannot-afford-instability-recklessness-in-banking-sector-akufo-addo/-------https://www.myjoyonline.com/we-cannot-afford-instability-recklessness-in-banking-sector-akufo-addo/

The president, Nana Akufo-Addo says the recent events in the banking sector is a major source of concern to his government and must be for any well-meaning Ghanaian.

Speaking to CEOs and captains of businesses in the country at the CEO summit currently underway in Accra, the president said the "viability of the financial sector is critical to the rapid development of the country."

For this reason, the president said “we cannot afford instability and recklessness in the banking sector” adding “any act of instability will affect the economy.”

His comments come on the back of major fallouts in the banking sector which have led to major takeovers, especially of local banks.

UT and Capital Banks have been taken over by the GCB Bank late last year.

The Central bank approved a purchase and assumption transaction with Ghana Commercial Bank Limited (GCB Bank) that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

The two indigenous banks became largely insolvent, meaning their liabilities exceeded their assets, which made it difficult or impossible for them to meet their banking obligations.

“Consequently, to protect customers, the BOG has decided to revoke the licenses of UT Bank and Capital Bank under a Purchase and Assumption transaction,” a statement from the Central Bank said.

Even before the dust on the UT and Capital Bank takeover will settle, the Central Bank early this year announced it has taken over Unibank, another indigenous bank.

The Central Bank then appointed KPMG as the official administrator of Unibank. These takeovers became a major concern for players in the banking sector.

The president, Nana Akufo-Addo is not only worried about the situation in the banking sector as a whole but even more so the demise of local banks.

He was quick to note that a banking sector dominated by foreign banks will not bode well for the development of the country.

He was nonetheless relieved by the tight monitoring and supervisory roles the Central Bank is beginning to take to sanitize the banking sector.

“It is in our interest that all financial issues are addressed without political interference,” the president stated.

He also charged the captains of businesses to ensure “good corporate governance becomes the norm.”

Speaking on the theme “leadership, innovation and investment for business and economic transformation,” the president said it is time for businesses to adapt to change by innovating or risk extinction.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.