I Will Restore The Licenses Of ‘Unfairly’ Collapsed Banks – John Mahama Promises After Winning NDC Primaries
Former President John Dramani Mahama has revealed his intention to reinstate the banking licenses of institutions that he believes were unfairly revoked during the Akufo-Addo government’s financial sector reforms.
Mahama aims to rejuvenate the banking sector and enhance financial trust by implementing a tiered banking system that caters to various market segments. This system is expected to provide opportunities for skilled banking professionals who were affected by the reforms and faced job losses. The objective is to revitalize the industry and instill confidence in the financial sector, according to the former President.
During a speech at the University of Development Studies (UDS) in Tamale, the National Democratic Congress (NDC) flagbearer-elect for the 2024 elections emphasized their plans to revive indigenous investment and the banking and investment sector. They outlined intentions to establish a tiered banking system that caters to different market segments. Additionally, the NDC aims to provide opportunities for experienced banking professionals who were laid off, allowing them to reclaim their careers and move away from lower-skilled jobs they were compelled to take. The party also expressed a commitment to restoring banking licenses that were unjustly revoked by the current government, to the extent that it is feasible.
He added “We will rejuvenate the almost collapsed banks. This will involve sweeping reforms at the Bank of Ghana. Because the Central Bank itself is a part of creating this problem. I will create the foundation that will ensure that, Ghana will not suffer such a deadly debt management programme that almost our elderly people holding government bonds to an early grave and wipe out the investments of the Ghanaian middle class.”
The process of cleaning up the banking sector took place between mid-2017 and January 2020. As a result of this clean-up, the number of banks decreased from 34 to 23, while 347 microfinance institutions, 15 savings and loans companies, and eight finance houses had their licenses revoked.