SONA 2024: Banking Sector Cleanup Was a Necessary Decision, Not a Vendetta—Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has reaffirmed that his administration’s 2017 banking sector cleanup was a critical move to protect Ghana’s financial stability and not driven by personal motives.

Delivering his final State of the Nation Address (SONA) to Parliament on January 3, 2025, the President emphasised that the cleanup was a response to systemic challenges threatening the country’s financial sector. The reforms, which involved revoking licenses, facilitating mergers, and shutting down non-compliant institutions, aimed to restore public confidence and protect depositors’ funds.

“The banking sector cleanup undertaken by my administration was an act of necessity, not of vendetta. It was a bold and decisive intervention to safeguard the strength and integrity of Ghana’s financial system,” President Akufo-Addo stated.

The president detailed the malpractices within the affected financial institutions, including legal breaches and irregularities, which jeopardised the stability of the sector and the savings of millions of Ghanaians.

“The illegalities and irregularities perpetuated by the affected banks and financial institutions are well-documented and indisputable. These practices threatened the very foundation of our banking sector and jeopardised the hard-earned savings of millions of Ghanaians,” he explained.

President Akufo-Addo highlighted the long-term benefits of the reforms, noting that Ghana’s banking sector has emerged stronger, more stable, and resilient, capable of supporting economic growth.

“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 capable of driving economic growth and supporting the aspirations of our people,” he said.

The President acknowledged the difficulties faced during the cleanup process but maintained that it was a necessary step to ensure the sector’s integrity and resilience.

“This was a courageous and decisive intervention, taken with the long-term economic future of our country in mind. Public confidence in the banking system has been restored, and we have laid a solid foundation for sustainable growth in the financial sector.”

President Akufo-Addo urged stakeholders to continue prioritising the health and stability of Ghana’s financial institutions to safeguard the economy’s future.