President Nana Addo Dankwa Akufo-Addo has described the 2018 banking sector cleanup as a “necessary act” to safeguard Ghana’s financial system, dismissing allegations of vendetta.
During his final State of the Nation Address to Parliament, the President characterized the cleanup as a bold and decisive intervention against widespread irregularities and illegalities within Ghana’s banking sector.
He argued that these practices jeopardized the sector’s stability and the hard-earned savings of millions of Ghanaians.
“Our actions ensured that not a single depositor lost their money—an unprecedented achievement in financial crisis management. Today, the results are there for all to see: a more robust, stable, and resilient banking sector,” he stated.
The banking sector cleanup launched in 2018 resulted in the revocation of licenses for nine banks, 23 savings and loans companies, and hundreds of microfinance institutions. The initiative cited insolvency, poor governance, and regulatory breaches as key reasons for these actions.
The government established the Ghana Amalgamated Trust (GAT) to support solvent but undercapitalized banks and committed over GH₵21 billion to settle depositor claims.
While the administration frames the cleanup as a necessary measure, critics argue that its execution raised concerns about transparency, proportionality, and fairness. Some stakeholders, including affected financial institutions, alleged that the Bank of Ghana’s (BoG) criteria for license revocations were inconsistently applied, with certain entities claiming they could have met the revised capital requirements given more time.
Moreover, the social and economic ripple effects of the cleanup were significant, including job losses and disruptions to credit availability for small and medium enterprises.
Others have also pointed out that the government’s fiscal burden from settling depositor claims added to public debt levels.
The administration claims the cleanup has resulted in a more resilient financial sector capable of driving economic growth. Banks now adhere to stricter capital requirements, corporate governance standards have improved, and regulatory oversight has been strengthened.
However, challenges remain, including public trust issues and constrained credit growth.
