#2019Budget: Weak banking sector now "well-capitalised" – Ofori-Atta

Finance Minister Ken Ofori-Atta has lauded the reforms in the banking sector. According to him, Ghana’s “economy has changed from one with a weak banking system to a strong, well-capitalised banking system, from a rising debt-to-GDP rate to a declining debt-to-GDP rate”...


Finance Minister Ken Ofori-Atta has lauded the reforms in the banking sector.

According to him, Ghana’s “economy has changed from one with a weak banking system to a strong, well-capitalised banking system, from a rising debt-to-GDP rate to a declining debt-to-GDP rate”.

Presenting the 2019 budget to parliament on Thursday, 15 November, Mr Ofori-Atta said: "The Bank of Ghana (BoG) is also working on a comprehensive plan to clean our banking sector".

The central bank recently fused uniBank with Sovereign Bank, The Royal Bank, The Beige Bank and The Construction Bank, to form a totally new local bank called Consolidated Bank Ghana (CBG) Limited.

On 20 March 2018, the government announced the takeover of uniBank due largely to liquidity challenges.

Announcing the takeover, the Governor of the BoG, Dr Ernest Addison, said uniBank was insolvent.

KPMG was then named as Official Administrator to manage the bank for some months.

The licences of the other banks were also revoked on grounds that some of them used suspicious information in setting themselves up, while others were insolvent.

Before morphing the five banks into CBG, the central bank, in August 2017, revoked the licences of two other local banks, UT Bank and Capital Bank, and were subsequently taken over by GCB Bank after having been declared "irredeemably insolvent" by the Bank of Ghana.

It has emerged that about 1,700 staff of CBG will be losing their jobs.

Source: Ghana/ClassFMonline.com/91.3FM



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