Former Finance Minister, Seth Terkper, has said the Energy Sector Levy Act (ESLA) and ongoing efforts to review the Banking Act were among plans that were being put in place to avert the recent of the collapse of some banks.

The comments by the former minister run counter to the claims by the current administration that the previous government, in which Mr Terkper served, is to blame for doing nothing to save the banking sector from near collapse.

Current management of the central bank, led by Dr Ernest Addison, has pointed accusing fingers at its predecessor for doing nothing, even after an Asset Quality Review and Stress Test conducted on the sector revealed that the sector was challenged and was at the verge of collapse.

However, disputing the claims, the Former Finance Minister, who initiated the audit of the sector, told Joy Business that the new banking regulations and the introduction of ESLA were immediate steps taken to save the sector from crushing.

“Energy Sector was the biggest challenge at the time in terms of size and that was what we sought. If you talk about the Energy Sector Levy, embedded in that, is the Enhanced Road Levy and that was tackle debts in the road sector,” he said.

He said debts in the road sector were weighing down the banks but the ESLA was adequately helping to ease the pressure on banks.

He also said after the Asset Quality Review, new regulations were formulated to deal with the challenges in the banking sector.