According to the General Manager of defunct GN Savings and Loans, Kofi Asamoah Siaw, the harsh increase in the minimum capital requirement of banks has been described as the main reason behind the collapse of banks in the country.

The jump in capital requirement from ¢120 million to ¢400 million was too extreme.

Speaking via a virtual seminar, he said the rules seeking to clean the financial sector were discriminately applied to favour some financial institutions.

“From the evidence and what has happened so far, you can see that the whole exercise of financial sector reform was an agenda that was capitalized on for if you like, the discriminately or subjective application of the rules.

"My statement to support this is that, if you look at the recapitalisation effort that was championed and marketed, no bank was actually folded up or had its licenses revoked purely on the basis of its inability to capitalise,” he stated.

Meanwhile, Kofi Asamoah Siaw stated that the financial cleanup exercise has not been fair and objective thereby lacking transparency.

He further called for collaboration between industry players and regulators of the financial sector, going forward, to protect consumers and safeguard jobs.

“The whole financial sector reform has not been transparent, done in a way that is fair and objective and some casualties have resulted in that process and is quite unfortunate and it has to be regressed,” he mentioned.