Financial Sector clean-up
Background As far back as 2012, under the NDC administration, the Bank of Ghana was well aware of the mess that bedevilled savings and loans and micro finance companies in Ghana, with the likes of DKM running away with depositors’ monies. Then again, an assessment on asset quality review carried out by the Bank of Ghana in 2015 and 2016 revealed severe challenges with solvency, liquidity, and asset quality in Ghana’s banking industry, with some banks showing significant under provisioning and capital shortfalls. It was established that some directors of the banks took depositors monies and lent to themselves and their businesses and refused to pack. This led to liquidity challenges and the inability of these banks to pay depositors when they came asking. A 2013 audit report on Uni Bank revealed that, in November 2013, Uni Bank bought Meridian House for $5.14 million and sold it for $6.3 million a month later (in December 2013) to StarLife Assurance through a third party. StarLife ...