The Bank of Ghana’s GHC400 million recapitalisation exercise saved over GHC11.6 billion of 1.5 million depositors, Governor of the central bank, Dr Ernest Addison, has revealed.

Dr Addison pointed out that contrary to the belief that the BoG has caused unnecessary losses in the banking sector, the clean-up exercise has "protected deposits" of clients, including deposits of savings and loans companies; rural and community banks; investment fund managers, pension funds, and life insurance companies with the banks.

The recapitalisation exercise ended on 31 December 2018, It reduced the number of universal banks from over 30 to 23.

In the apex bank’s view, these banks are sound, liquid, well-capitalised, and well-positioned to translate the gains made so far from two years of far-reaching reforms, to the rest of the economy.

Dr Addison expressed confidence that the recent actions of the central bank will lead to a better financial industry in the country.

“At the end of December 2018, total assets of the banking sector grew by 14.7 per cent year-on-year to GHS107.3 billion. Going forward, growth in industry assets is expected to rebound, as banks deploy their newly-injected capital towards financial intermediation,” he noted.