Many people are suffering due to collapsed local financial institutions – Mahama bemoans

The flagbearer of the National Democratic Congress (NDC), John Dramani Mahama has bemoaned the repercussions collapsed banks and other local financial institutions are having on the businesses and the entire Ghanaian populace.

According to him, the financial sector clean up has rendered a lot of people jobless, adding that individuals and businesses with investments in these institutions are compelled to shut down.

Speaking during an interaction with the leadership of the Coalition of Affected Savings and Loans Customers (CASLOC), bankers and fund managers, the NDC flagbearer among other things urged the Akufo-Addo government to go beyond lip service and pay affected customers what is due them.

“Many people are suffering, ” he noted.

The NDC flagbearer recounted how the two previous NDC administrations deliberately encouraged more Ghanaian participation in the financial sector.

“We promoted indigenous participation in the financial sector because we realized that the sector was dominated mostly by foreign interests, big foreign banks… we said that this sector was such an important sector, so Ghanaians should participate in it”, he stressed.

Explaining further, President Mahama said the microfinance and savings and loans companies helped in expanding the participation of indigenous capital in the sector.

“Specifically, the purpose for that was to improve small and medium enterprise lending because the big banks were not attuned to SME lending”, he added.

According to President Mahama, before the change of government, the NDC administration had begun working to streamline the activities of the local banks, leading to the passing of the Depositors Insurance Scheme and other bills.

He noted that Institutions that were operating out of their permitted remit were also given a two-year window within which to regularise their operations.

He lamented that if the process had not been truncated immediately the Akufo-Addo government came into office, coupled with the huge increase in the minimum required capital to GH¢400 million, many of the Ghanaian owned institutions would not have been closed down, people would not have lost their jobs and deposits would have been saved.