In a yet-to-be aired interview with Kojo Mensah for Sunday Night on Asaase Radio 99.5 FM, the Assin Central lawmaker argues that no development could have taken off without a vibrant financial sector.
“The ten commandments of Akufo-Addo, the greatest of all is the consolidation of the banks and reinjection of capital into these banks, because that is the foundation. Without these banks, President Akufo-Addo, the Finance Minister, the Economic Management Team, they couldn’t have done anything,” he said.
“So, the consolidation of the banks, reinjection of GHC23 billion, is the magic that has done everything before Free Senior High School. Because if you don’t have the money, all this money pumping into education wouldn’t have come. So, the ten commandments of Akufo-Addo, the greatest of all is the consolidation of the banking sector.”
Agyapong said that the Mahama-led government collapsed banks, whereas the current government came to revive the ailing banking sector and stabilise the economy.
The Bank of Ghana, with support from the Ministry of Finance in 2017, embarked on a clean-up of the financial sector, resulting in the revocation of the licences of some financial institutions.
The central bank started by raising the minimum threshold of paid-up capital for existing banks and new entrants from GHC120 million to GHC400 million.
According to the regulator, this was to test the banks viability. Those banks that were unable to meet the new requirement were either merged or collapsed.
Following the action by the Bank of Ghana, nine local banks, 23 savings and loans companies, 347 microfinance institutions, 39 finance houses and 53 fund management companies closed down.
In total, the government spent GHC23 billion to undertake the clean-up exercise.
Among the institutions affected were uniBank, Sovereign Bank, Beige Bank, Premium Bank, Royal Bank, Heritage Bank, Construction Bank, UT Bank and Capital Bank.
Tune in to “Sunday Night” today (22 November) at 7pm for the full version of the conversation with the MP for Assin Central, Kennedy Agyapong.