The Minister of Finance, Ken Ofori-Atta has described the closed down of various financial institutions as way of sanitizing the financial sector.
According to him, the licenses of these insolvent institutions were revoked in order to curtail a spill over their weaknesses to other sectors of the financial industry.
” Insolvent specialized deposit institutions comprising of 23 savings and loans and finance house companies, 347 microfinance companies and Non-Bank Financial Institutions comprising of 39 micro credit companies, one dormant leasing company and one dormant remittance company were also resolved in May and August 2019 respectively.
“This is to safeguard the financial system against potential contagion and weaknesses in the SDI sector which threatened to erode the gains made in the banking sector”, Ofori-Atta said.
He added that the central bank will continue to pursue policies and strengthen supervision to ensure that the banking sector remains well-capitalised, solvent and profitable.
Mr Ofori-Atta stated that the Nana Akufo-Addo-led government has stepped in to intervene and to save over 4m depositors and investors and that their commitment is to ensure that victims are provided relief.
“We acknowledge the pain and distress of some depositors including pensioners and we assure them that negligent official and operators will be held accountable”, he added.