Former Deputy Governor justifies recent comments on banking crisis

Former Deputy Governor justifies recent comments on banking crisis
Source: Ghana | | AI
Date: 23-08-2019 Time: 06:08:48:pm

Former central bank Deputy Governor, Dr Johnson Asiama has justified his recent comments about the banking crisis and how the current administration has handled the development.

He said the interview was meant to throw light on the circumstances and the reasons for some of the issues arising in relation to the banking sector reforms. 

“I took the time to explain the genesis of the problem and also to let the public know that although I was not the Governor at the time, in my view there were well-intentioned reasons why some of the collapsed banks were issued licenses at all.

“Key among these was the thinking at the time to encourage indigenous local banks to also feature in the banking landscape,” he said. 

Related: BoG replies former Dep Governor on banking sector cleanup

In a statement Friday, BoG said, “Under the leadership of Governor Addison, the Bank of Ghana has in its earlier press statements said that the reasons for the mass failures of financial institutions we have witnessed in the last two years include regulatory forbearance on the part of previous management of the Bank of Ghana.

“As embarrassing as this is for the Bank of Ghana, the current management under Governor Addison will be doing the people of Ghana a great disservice if this admission was not made. Without pointing fingers at any particular individual, the Bank of Ghana has in all sincerity made this assertion in good faith.”

Below is Dr Asiama’s response