Be on the lookout, just as we have good banks, there are also bad banks – Finance Minster warns

Finance Minister Dr Mohammed Amin Adam has warned the general public to be wary of irresponsible banks and financial institutions in the system to avoid being swindled.

He says that just as there are responsible banks and financial institutions, there are equally bad ones among them therefore the public should be on guard.

Dr Amin Asams said this while serving notice that the government would not take responsibility for the investment decisions of individuals again after earmarking an amount of  GHS1.5 billion to pay the initial compensation to the people affected by the banking sector clean up exercise from now to October.

Answering questions during a town hall meeting in the United Kingdom over the weekend, he said ” The question on the money locked out, we are going to pay. We do not take responsibility as a government because when people decide to invest in one bond or one instrument or another government is not consulted, it is an individual decision and when you are investing you know you can make your returns or you can also lose.

“Even, as a government when we invest in euro bonds the market is volatile, we lose, we gain and when we lose we don’t blame America or Britain for losing, we are advised before we invest so it is important for us to establish that foundation that the government will not be held responsible for the investment decisions of individuals but this government is so caring.

Banking sector clean-up was necessary, not destructive to Ghana’s Economy – Financial Analyst

“Mistakes were made and people were not well-informed, maybe they didn’t know who to consult to be advised, but we also know that the people who are affected are suffering, and we have heard that some people have died and others had to commit suicide.

“This government is so caring that in the first place, we granted some bailout to all the affected and I want to tell you again that the President has directed that we do another bailout.

“So between now and October, we will release 1.5 billion Ghana Cedis to the affected people,” he said.

He added “This will not be the entire amount, the entire amount is GHS4 billion but we are showing the roadmap, we will do the GHS1.5 billion and Insha Allah Dr Bawumia will come as the president and we will do the rest but as we do this we will also be cautioning you that just as we have responsible banks we also have bad banks, you will say that the regulators must ensure we don’t have bad banks but in every house, there is a Mensah, so we also have to watch out, let’s study them, let’s assess them, seek advise of financial advisors before we decide where we invest and how much to invest.”