Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), has once again made it clear that the licenses of banks revoked during the 2017-2019 financial sector reforms will not be reinstated as long as he remains in office.
In a television interview aired on JoyNews on January 2, 2025, Dr. Addison responded to calls for the reinstatement of the revoked licenses, stating, “As long as I remain Governor, none of those licenses will be reinstated.”
Dr. Addison’s remarks came in response to questions about the possibility of the incoming government considering the reinstatement of revoked licenses following appeals from the shareholders of the banks whose licenses were revoked.
The Governor emphasized that the decisions to revoke the licenses were not arbitrary but followed thorough reviews of the institutions’ operations. He pointed out that many of these banks had engaged in risky investments and mismanagement of depositor funds, which led to their downfall.
“These shareholders treated depositors’ money as their own, using it to fund personal businesses or invest in illiquid projects that couldn’t provide funds when needed,” Dr. Addison stated, highlighting the reckless financial behavior that led to the revocation of these licenses.
During the 2017-2019 financial sector reforms, the Bank of Ghana revoked the licenses of nine universal banks, 347 microfinance companies, 39 microcredit companies, 23 savings and loans firms, and eight finance houses. Some of these entities were consolidated into the Consolidated Bank Ghana (CBG), which helped ensure the continuity of banking services in the country.
Dr. Addison emphasized that the reforms were necessary to protect the integrity of the financial sector and to safeguard the interests of depositors. He reiterated that mismanagement in the collapsed institutions went against the very principles of banking.
“When I give you a banking license, I am giving you permission to take people’s money, not to treat it as your private property,” Dr. Addison said, stressing the central bank’s primary mandate to protect depositors and maintain financial stability.
Dr. Addison also referenced data from the Ghana Statistical Service, which shows the positive impact of the reforms on the financial sector. He criticized attempts to downplay the reforms’ necessity and warned that any move to reinstate revoked licenses would undermine the sector’s stability.
“A banking license is a special instrument, and the responsibilities it comes with must be taken seriously,” he added, underscoring the importance of accountability and transparency in the financial sector.
