The flagbearer of the New Patriotic Occasion (NPP) has criticised the Nationwide Democratic Congress flagbearer, John Dramani Mahama over his promise to revive the licences of some collapsed monetary establishments.
Mahama, through the launch of the NDC’s manifesto at Winneba, promised to revive the licenses of monetary establishments that he stated have been unjustly collapsed by the NPP authorities.
Nonetheless, in a media engagement, Dr Bawumia expressed shock at Mahama’s stance, stating that the NPP’s actions saved the deposits of 4.6 million financial institution clients who would have misplaced their funds if the banks had not intervened.
He defined that some banks had engaged in egregious practices, equivalent to extending loans past authorized limits, misusing capital, and investing in personal properties.
Dr. Bawumia emphasised that the banking sector was on the point of collapse, necessitating the merger of some banks to forestall a systemic disaster.
He suggested Mahama to learn the experiences of the Receiver and the Financial institution of Ghana to grasp the scenario earlier than making additional feedback.
“We saved the deposits of 4.6 million financial institution depositors who actually have been going to lose their deposits if these banks weren’t saved. I don’t perceive whether or not the previous president has taken his time to grasp the banking sector. Some atrocious issues and that is why these banks needed to be saved.
“They weren’t collapsed, they have been merged into different banks and no banking depositor misplaced 1 cedi, all people maintained. However very dangerous issues occurred, among the banks broke all the foundations and prolonged loans method above the only obligor limits.”
“They got, in some instances 1 billion by the Financial institution of Ghana to assist them out of the mess they usually solely acquired deeper into the scenario. Different banks got capital to avoid wasting the scenario, they usually used that cash to arrange Capital Financial institution, as a substitute of rescuing the issue that that they had. They took the cash from the central financial institution and arrange one other enterprise which additionally collapsed. Some took cash and invested in personal properties.”
“So, it was towards this background the governor got here to report, and this was certainly one of my nightmares within the final eight years. Most individuals didn’t perceive how shut we have been to a collapse of your entire banking system. That is how we needed to merge many of those banking sectors into different banks and we saved 4. 6 million depositors.”
“I’ll ask the previous president if he hasn’t learn, to go and browse the receiver’s report or the BoG’s report and acquaint himself earlier than making any additional feedback on issues he clearly doesn’t perceive.
He must get an understanding earlier than making additional feedback and he can’t hand over a financial institution’s licence to them, that is topic to authorized process.