Dr. Bawumia has expressed worry over the Former President’s promise to reinstate the licenses of collapsed banks and allow them to resume operations.
Speaking at a media event in Accra, Dr. Bawumia emphasized that reinstating these licenses involves a complex legal process and cannot simply be undone with a political promise.
He explained that banks were given capital from the Bank of Ghana to address their financial issues, but instead of using the funds to resolve their problems, some banks misused the money by investing in private property or setting up new ventures like Capital Bank. This misuse exacerbated the crisis.
Dr. Bawumia recounted that the situation was dire, with the potential to collapse the entire banking system if depositors had attempted to withdraw their funds from troubled banks like UT Bank or UMT. The banking system was on the brink of a total collapse, and urgent measures were required to prevent a complete breakdown.
He pointed out that, in response, decisions were made to merge struggling banks into stronger ones, which helped save 4.6 million depositors. He urged the former president to review the receiver’s and Bank of Ghana’s reports for a clearer understanding of the situation before making statements on the issue.
Dr. Bawumia also stressed that restoring a bank’s license is governed by legal procedures and requires court involvement, something that cannot be achieved through mere executive promises.
