The Bank of Ghana says it will, together with government, launch the commencement of operations of the Ghana Deposit Protection Scheme from next month to protect depositors’ interests.
This comes in the wake of the completion of a two-year-long clean-up of the banking sector.
The clean-up saw the revocation of licenses of nine universal banks, 347 microfinance companies, 39 micro-credit companies, 15 savings and loans companies, eight finance house companies and two non-bank financial institutions that have already ceased operations.
The clean-up began in August 2017 with the takeover of UT Bank and Capital Bank by GCB Bank Limited.
According to a statement issued by the Central Bank on Friday, August 16, the sector is being sanitized in accordance with Sections 123 to 137 of Act 930.
It said efforts were put in place to get shareholders and directors of the affected institutions to rectify lapses, particularly the significant capital deficiencies.
“The Bank of Ghana is committed to ensuring that the banking, SDI, and NBFI sectors remain resilient, inclusive, and supportive of Ghana’s economic growth trajectory,” the statement on Friday said.
It assured that vigilance will be intensified from hence to ensure that the remaining financial institutions remain resilient.
It said aside meting out sanctions to non-compliant institutions, it will ensure that early warning signals of distress are mitigated expeditiously.