Minority Leader, Dr Cassiel Ato Forson, has expressed concern about the current state of the banking sector in the country, especially the impact of government policies on local banks.
According to him, it is about time government holds a conversation on how to sustain the local banks.
“I believe it’s time for a serious discussion about how we can support our local banks and help them this difficult period,” he noted in a Facebook post on Saturday.
This, according to him, is because: “It’s no secret that many of these banks, which are essential to supporting small and medium-sized enterprises (SMEs) in Ghana, are facing severe financial difficulties.”
His comments come after banks, following the domestic debt exchange programme, recorded huge losses in the first quarter of the year.
A recent assessment of financial statements of banks by Dr Richmond Atuahene and K B Frimpong revealed that banks will lose an additional ¢6 billion due to reduced coupon rates and the extension of the maturity period from five to 15 years.
The legislator said, “Under the leadership of Alhaji Bawumia, the Head of EMT, the NPP government has implemented policies that have seriously eroded the capital of most of our banks.”
This, in his view, is having a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of our economy.