President Nana Addo Dankwa Akufo-Addo has given strong indication that individuals whose actions and inactions led to the collapse of some local banks are not going to escape the law.

“Those responsible for the sequence of activities which led to the banking crisis will face the full force of the law if they are found to have broken it.

“It is not right that the overwhelming majority of ordinary Ghanaians should pay for the actions of a greedy few, without sanctions.”

President Akufo-Addo was speaking at a grand durbar to mark the 80th anniversary of the Presbyterian Boys’ Senior High School (SHS) at Legon, Accra.

He said the local banks’ collapse was steeped in lawlessness at one stage or another, and that those issues were as a result of constantly breaking the rules and regulations.

“The so-called ‘banking crisis’ and the collapse and subsequent consolidation of some indigenous banks have been caused by cutting corners, circumvention of the laws, flouting and non-adherence to regulations – apparently with the complicity of senior officials at the Bank of Ghana (BoG).”

President Akufo-Addo said it is gratifying that the industry regulator, the BoG, has taken steps to restore order in the sector, which is inhabited by inefficient and poorly-managed banks.

The government has had to issue a bond to the tune of GH¢8billion in favour of the Ghana Commercial Bank the new Consolidated Bank to protect deposits of the seven defunct banks.

The bond’s issuance was in addition to liquidity support of GH¢4.7billion provided by the BoG to the seven banks before their collapse.

The president said those interventions, amounting to GH¢12.7billion, had safeguarded depositors’ savings and minimised job-losses.

He underlined his unswerving determination to ensure a vibrant financial sector.

“I have no doubt that if these measures had not been taken the banking system would have been seriously compromised, with dire consequences for depositors and their savings.

“We urgently need a vibrant banking sector that can help mobilise resources to fiance our industrial, agricultural and economic transformation,” the president added.