Governor of the Bank of Ghana, Dr. Ernest Addison, has revealed that he took over leadership of the Central Bank during a turbulent period when the International Monetary Fund (IMF) had recommended drastic measures to stabilize the country’s financial sector.

According to him, the IMF had recommended sweeping reforms, including the revocation of banking licenses for UT Bank and Capital Bank.

Speaking at this year’s Governor’s Day dinner organized by the Chartered Institute of Bankers, Dr. Addison explained that the BoG had no choice but to take decisive action to safeguard the financial sector.

“There are a few requirements which the IMF calls the prior actions, you have to do this, you have to do that otherwise they are not even going to organize a board meeting to discuss Ghana and disburse any funds to you,” he said.

Dr. Ernest Addison’s tenure began with implementing banking sector clean-ups, which saw the revocation of licenses and structural reforms aimed at restoring public confidence and financial stability.

He also underscored the depth of the crisis that rocked Ghana’s financial sector and how it raises questions about the balance between external recommendations and national decision-making in economic governance.

“This was one of the prior actions—to dissolve UT and Capital Bank. Ghanaians had not witnessed such actions in a long time. Many were shocked when the licenses of the two banks were revoked,” he stated.

BoG revokes licenses of UT and Capital Bank

The licenses of the two banks were revoked in August 2017, the same year Dr. Addison assumed office as Governor of the central bank.

From August 2017 to August 2018, seven banks the Beige Bank, uniBank, UT, Capital, Sovereign, Construction and Royal banks have had their licenses revoked.

The central bank cited the managers of the bank for several breaches of the regulation guiding banks in Ghana.