BRIGHT SIMONS REVEALS THAT BANKS ARE ON THE BRINK OF INSOLVENCY

News

Bright Simons, the Vice President of IMANI Africa, has painted a bleak picture about the state of Ghanaian banks resulting from distresses in the country’s fiscal system.

Mr. Simons was speaking at the 2022 Edition of the Baah-Wiredu Memorial Lecture on Thursday and noted that some banks are on the verge of insolvency due to the Government’s inability to protect the country’s fiscal space.

He predicted that the Government would need more than $ 1 billion for a financial sector clean-up, describing the situation as “catastrophic” for the economy.

He revealed that some banks are already on the brink of capital distress, some banks are literally on the brink of insolvency in Ghana. He attributed the situation to Government’s attitude of lack of will to tackle the problem.

He added that some banks’ asset quality reviews revealed distressing positions and advised the Government to tread cautiously in dealing with the matter. The government has spent about GH₵25billion since 2018 on the banking sector clean-up to save the deposits of customers.