The intervention by the government to save depositors and investors whose funds were locked up with failed financial institutions has been very costly. This is according to the Finance Minister, Ken Ofori-Atta.
Presenting the 2020 budget and financial policy in Parliament on Wednesday, Mr Ofori-Atta said the banking sector is now well-capitalised, liquid and well-positioned to help improve the flow of money in the system.
“Following the successful completion of reforms in the banking sector which begun in August 2017 and ended in January 2019, we now have a more resilient sector, well positioned to support the economic growth agenda of the government,” he said.
At the start of the reforms in August 2017, Mr Ofori-Atta said the total assets were GH¢89.1 billion for a sector that had 36 banks, and two years after the reform process started.
He noted that 104 banks’ profitability had also been greatly enhanced with a significant pick-up in profit after tax in 2019 compared to the previous year.
“The sector’s solvency remains strong,” he added.