The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has emphasized that he is under no pressure—political or otherwise—to reinstate the licences of financial institutions that lost their operating rights during Ghana’s banking sector reform.
Addressing the media at the 125th Monetary Policy Committee (MPC) press conference, Dr. Asiama made it clear that any decision regarding the restoration of licences must adhere strictly to legal and institutional procedures.
“Not at all,” he responded when asked if he felt compelled by public or political forces to act. “Reinstatement is not something the Governor can do unilaterally. It requires a directive from the courts and the involvement of the Bank’s Board.”
He noted that many of the affected cases remain in court or are undergoing settlement discussions. As such, the Bank will continue to operate within the confines of existing resolution frameworks.
“I assumed office at a time when substantial progress had already been made in the sector cleanup. The process is still ongoing, and we will respect the legal pathway,” Dr. Asiama added.
His comments come amid renewed political discourse surrounding the collapsed financial institutions, sparked by former President John Mahama’s campaign pledge. Following his nomination as the National Democratic Congress (NDC) presidential candidate in May 2024, Mr. Mahama vowed to increase local participation in strategic sectors of the economy, including banking.
The banking sector reforms, launched in 2017, raised the minimum capital requirement from GHS120 million to GHS400 million. As a result, hundreds of financial institutions—including banks, microfinance firms, and savings and loans companies—either collapsed or were consolidated for failing to meet the new threshold.
The cleanup led to the revocation of licences for:
- 9 commercial banks, including UniBank, UT Bank, Capital Bank, and The Royal Bank
- 23 savings and loans companies
- 347 microfinance institutions
- 39 finance houses
- 53 fund management firms
While the Bank of Ghana maintains that the cleanup was critical to stabilising the financial system, critics argue that some institutions could have been salvaged to protect jobs and preserve Ghanaian ownership.
Dr. Asiama reaffirmed the BoG’s dedication to sound financial governance, insisting that any future decisions regarding licence reinstatement will be guided solely by legal judgments and institutional processes, rather than political considerations.
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