The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has been summoned by Parliament to provide an update on the controversial banking sector clean-up exercise that took place in 2017.
Why is Parliament Investigating the Clean-Up?
- Dr. Asiama is expected to appear next week to address concerns over the financial sector reforms.
- The exercise, led by former Finance Minister Ken Ofori-Atta, aimed to stabilize the banking industry by addressing issues of insolvency and poor corporate governance.
- Parliament wants clarity on how funds were allocated and whether due process was followed.
Key Outcomes of the 2017 Banking Reform
- Banking sector shrunk from 34 banks to 23 after license revocations.
- 347 microfinance institutions, 15 savings and loans companies, and 8 finance houses had their licenses revoked.
- Government intervention cost an estimated GH¢16.4 billion (2017–2019), later rising to GH¢21 billion in 2020.
- Multiple legal battles are still ongoing, as some affected financial institutions challenge the government’s decision in court.
What’s Next?
With Parliament now taking a fresh look at the impact and financial burden of the clean-up, Dr. Asiama’s testimony could provide new insights into the long-term effects on Ghana’s economy and banking sector stability.
