‘Incompetent’ Mahama caused banking crisis – Bawumia
Vice President, Dr. Mahamudu Bawumia has said that former President, John Dramani Mahama and the National Democratic Congress (NDC) have no alternative approach to a clean-up of the mess created by his (Mahama’s) administration in the banking sector.
According to Dr. Bawumia, the NDC failed to put measures in place to ensure that financial houses comply with regulations in the financial sector hence the crisis the country is currently facing.
The comments by the Vice President come after the former President, John Dramani Mahama, during an interaction with fans on Facebook described the banking crisis as a national security threat.
In the video, John Mahama bemoaned the rather ‘harsh’ approach adopted by the Central Bank and the Akufo-Addo government adding that his government would have had a more humane approach to dealing with the insolvency situation of a number of the now-defunct financial institutions.
But responding to the former President’s claims at a sod cutting ceremony for the affordable housing project in Amasaman, the Vice President advised the NDC flagbearer to desist from making remarks on the banking sector crisis.
“The banking crisis developed under your watch yet nothing was done,” Bawumia said.
He noted, “The government has saved 4.6million depositors in the interest of financial stability and national security.”
The Vice President revealed that the government has already set up a policy working group on finance and economy to study and analyse “the situation with a view to coming up with pragmatic steps that we can employ, not only to restore the confidence of our people in the banking system but also ameliorate the suffering imposed on the customers and staff of these financial institutions caused by the poor handling of the crisis by this administration.”
He added “The group will also come up with plans for restoring the indigenous stake and participation in this all-important sector. We will consider ways to promote greater financial inclusion and innovation, and will consider setting up an appropriate vehicle to regulate microfinance and allied sectors in particular while developing the rural banking system and enhancing the role of the ARB-APEX Bank’s supervisory structure.”
The government’s cleanup of the Banking Sector has led to the amalgamation of a number of banks in order to make them more viable.
The Bank of Ghana on Friday, 16th August 2019, also revoked the licenses of 23 savings and loans companies and financial houses.