The Pension Industry’s exposure to banks is approximately GH¢863.63 million, this was contained in Finance Minister’s Memorandum to Parliament.
Ken Ofori-Atta is seeking the approval of Parliament to expend up to GH¢15.6 billion for the financial sector.
Mr Ofori-Atta stated that total exposures of banks to the securities industry was approximately GH¢839.42 million. Banks’ total exposure to the insurance industry was approximately GH¢33.44 million.
A mapping exercise conducted by BOG on exposures between and across financial institutions in the Ghanaian economy shows that as of September 2019 total exposures of banks to other financial institutions were approximately GH¢1.54 billion.
Total exposures of Banks to SDIs was approximately GH¢669.51 million.
Total exposures of SDIs to the universal banks was approximately GH¢933.64 million. Total exposure of Savings and Loans institutions to other financial institutions were approximately GH¢637.61 million and the Savings and Loans industry held approximately GH¢467.73 million of other financial institutions funds.
In view of the interconnectedness of the sector and the need to prevent the financial system from running into crisis, government took an emergency step to protect depositors and investors whose funds were locked up in the failed financial institutions.
The measures included the issuance of non-marketable securities in 2020 to cover the toxic assets and make whole depositors in the nine universal banks that failed, the paying of a capped amount of GH¢20,000 to validated clients as well as providing liquidity to validated, solvent financial institutions whose funds were locked up with the failed financial institutions to avert a systemic crisis.
The Memo concluded, “In view of the foregoing, and the need to protect the financial sector, Parliament is respectfully requested to consider and approve an expenditure of up to GH¢15.6 billion for the bailouts of depositors and investors. And for ensuring that liquidity in the financial system is improved thereby safeguarding the financial sector and the economy. This amount covers all the fiscal interventions in the financial sector starting 2017.”
- Gabby Otchere-Darko hangs out with Arsenal players after win over Spurs
- Akufo-Addo directs SIGA Boss to probe infractions in 2021 Auditor General’s report
- I don’t feel sabotaged – ECG MD on credit purchase challenges
- ECG’s IT department resisting checks and balance moves by the MD – Kwadwo Poku
- I broke down after old tweets resurfaced – KiDi
- Declare state of emergency in mining areas – OccupyGhana to Akufo-Addo
- Kwasi Kwarteng’s U-turn won’t be forgotten
- Social media reacts to death of Ekow Blankson
- Diversions of $100m oil money disconcerting; Finance Minister must repatriate funds urgently – Mahama
- Pete Edochie and wife celebrate 53rd marriage anniversary
- Nima Dreams: ‘Inadequate pitches causing decline in football talents’ – Mohammed Polo
- How Dansoman influenced Akosua Adjepong’s career
- NSMQ 2022 launched; fixtures for preliminary stage released
- ‘It’s an inspiration to do more’ – Mohammed Kudus reacts to messages from Right to Dream
- We’ve paid ¢2.4bn to pensioners as of August 2022; never defaulted – SSNIT Boss
- The viral lynching that was to end Nigeria’s mob justice
- Finance Ministry to continue IMF negotiations in U.S.A
- Government bags ¢8.11bn from T-Bills in September 2022
- Nigeria gunmen disguised as guards kill 12 people
- Create a budget to fight cyber crime – Cyber Security Authority to businesses
- GCB Bank vows to offer competitive and affordable credit to customers
- Ignitia introduces new weather tool for Agriculture sector
- Residents of Asamang-Tamfoe protest attacks by Okyeman Environmental Task Force
- GGBL’s Johnnie Walker headlines 2022 Emy Awards
- Today’s front pages: Tuesday, October 4, 2022