The Minority in Parliament has thrown a challenge to government and Bank of Ghana to take steps to protect other banks from collapsing.

The opposition lawmakers wants the current administration to mirror the past government’s financial initiatives in the banking industry.

Addressing a news conference in Accra Tuesday, Minority Spokesperson on Finance, Casiel Ato Forson said the past NDC government took “deliberate” steps to shield the banking sector from losses.

GCB Bank rebrands headquarters of Capital Bank

“Notably among them is the Ghana Deposit Protection Act, 2016 (Act 931). This Act established the Deposit Protection Scheme (Insurance), the Deposit Protection Fund, and Deposit Protection Corporation,” he said.

The former deputy Finance Minister said the Act seeks to protect depositors from potential losses in the banking sector.

The Minority’s press conference was to react to the acquisition of two collapsed banks, UT and Capital Banks by GCB Bank.

GCB Bank rebrands headquarters of UT Bank

The Central Bank on Monday gave its approval for the sale of the two banks to the largest indigenous bank in the country.

The two banks had a severe capital impairment, the Central Bank said and went ahead to revoke the licenses of the banks.

After operating as a fully-fledged bank, the banking regulator said UT Bank and Capital Bank are too distressed to exist.

Reacting to the sale, the NDC MPs said the two banks would not have collapsed had the Bank of Ghana played its supervisory role.

Mr Ato Forson said it was because of this "supervisory and regulatory gaps" that the NDC government enacted the Specialised Deposit Taking Institutions Act, 2016 (Act 930) to strengthen the banking system.

Although he said the Minority accepts the "Purchase and Assumption (P&A)" transaction between UT, Capital Banks and GCB Bank, it wants the Central Bank and current government to implement the laws passed by the past administration.

"We strongly urge these three institutions, (BOG, GCB, and PwC), and the Ministry of Finance (MOF)...to ensure strict adherence to the distinct benefit of the purchase and assumption (P&A) transaction, so that no single depositor loses his or her investment," Mr Forson said.

He cautioned the consequences of loss of deposit by customers will be too gigantic for the economy to cushion.

"It will result in an unforeseen burden on taxpayers instead of the original owners of UT and Capital Banks," he added.