President Nana Addo Dankwa Akufo-Addo of Ghana urged the country’s central bank here on Friday to take steps to strengthen its regulatory measures.

Addressing the commemoration of the 60th anniversary celebrations of the Bank of Ghana, Akufo-Addo said these measures were needed to minimize any adverse financial consequences for depositors.

“I urge you as the nation’s central bank to remain committed to the process and to address the challenges confronting the banking sector. This will not only guarantee financial stability but also promote greater confidence in that sector,” the president stated.
Akufo-Addo also underscored the need for a strong banking sector for an economy that seeks to grow and address the basic developmental challenges of its people, praising the central bank for revoking the operating licenses of two commercial banks, UT and Capital, which had become insolvent.

“A weak banking system undermines growth and, on this basis, the current weakness in our banking sector needs to address forcefully to minimize any adverse financial consequences to unsuspecting savers and their spillover effects on the economy.
“Your most recent measures in intervening decisively over the matters of UT Bank and Capital Bank demonstrate your preparedness to act in a manner worthy of a responsible central bank. I am confident that you have the support of the nation,” he added.

The president urged the bank to complement government’s efforts in ensuring a stable macroeconomic environment for the country.

The Governor of the Bank of Ghana, Ernest Addison, reiterated the resolve of the central bank to continue implementing measures that would sustain the strength of the financial sector.

“As part of our mandate to maintain price stability, the bank has embarked on the process to resolve some of the prevailing issues which threaten the banking sector,” the governor announced.

Addison said such measures saw the revocation of operating licenses of two commercial banks on Monday.

“This, together with other prudential and supervisory measures introduced by the Bank of Ghana, is geared towards safeguarding the stability of the financial system, and creating a healthy financial sector capable of supporting the transformational agenda of the government,” he said. Enditem

Source: Xinhua/Newsghana.com.gh