President Nana Addo Dankwa Akufo-Addo has applauded the Bank of Ghana for revoking the licences of UT and Capital banks, describing the action as of the regulator as decisive.

The Bank of Ghana [BoG] on Monday announced a takeover of the two commercial banks by GCB Bank, and said it would stop at nothing in ensuring that perpetrators are punished.

He said the manner with which the BoG acted demonstrates how responsive the regulator is, while assuring of the support of Ghanaians.

“The most recent measure in intervening decisively in the matters of UT Bank and Capital Bank demonstrates your preparedness to act in a manner worthy of a responsible central bank of praise worthy regulator. I am confident that you have the support of the nation,” he said.

President Akufo-Addo gave the commendation at the launch of the 60th anniversary of BoG in Accra Friday. Stakeholders in the banking sector attended the event.

It is on the theme “celebrating 60 years of central banking in Ghana, achievements, challenges and prospects”.

Launching the anniversary, he urged BoG to introduce stringent measures to sanitise the country’s banking sector by strategically addressing the challenges to inject confidence in the sector.

These he said includes lowering the cost of funds to ensure increased investments, weeding out unlicenced institutions to inject confidence in the financial sector and protecting the integrity of payment systems.

Akufo-Addo also wants “broadening and deepening access to banking to most of our rural population. The need to entrench reputation and credibility in the financial system is crucial.”

For the president, there is an urgent need to address the weaknesses in the banking sector, noting, “a weak banking system undermines growth.

“The current weaknesses in our banking sector need to be addressed forcefully to minimize any adverse financial consequences to unsuspecting savers and the spill over effects on the economy,” he advised.

Cooperation

The president suggested the need for cooperation between the bank and the government to be strengthened, stating, “to sustain macro –economic stability and rapid growth in a developing nation like ours, there must be partnership, a cooperation between the central bank and government.

Though he said BoG enjoys full autonomy, it “does not mean the bank’s monetary policy should be at variance with governments overall macro-economic policy”.