The Vice President, Dr. Mahamudu Bawumia, has said the decision taken by the central bank to clean up the banking sector was carefully planned and was not done in a haste.
Speaking at a town hall meeting in Kumasi, the Vice President explained that the nine indigenous banks had challenges that threatened the overall health of the banking sector and the Bank of Ghana was justified in its mass closure.
He stated that the affected banks have engaged in acts that could be considered fraudulent with some procuring their licenses under fraudulent means coupled with poor corporate governance practices.
The weak nature of these banks, he said, threatened more than 4.6 million of depositors with several jobs on the line.
He stated that the decision taken by the Bank of Ghana protected the deposits of about 5 million depositors, while jobs were protected due to the creation of the Consolidated Bank to merge seven of the nine banks.
He assured that depositors of the collapsed banks would receive all their locked up deposits just as directed by President Nana Addo Dankwa Akufo-Addo.