He said the collapse of the local banks is one of the contributory factors for the high debt stock in the country adding that the government could have channeled resources into supporting the indigenous banks.
In a media engagement, Bagbin stated that “It is the focus of every country to ensure they are in control of the banking sector. So if we had Ghanaians with banks having challenges, it is incumbent on us to make them succeed.
“I think our colleagues in government erred in not seeing it that way.”
He explained that “They [Government] tried and ensured that Ghanaians making it in the sector lost out and instead of using about GH¢5 billion to help the banks to survive, we ended up losing GH¢25 billion, and we have still not been able to sanitize the system and there is still a lot of work to be done.”
The Central Bank initiated reforms to among other things strengthen the banking as well as the financial sector.
The implementation of these reforms which ranged from corporate governance to capital requirement saw some banks and financial institutions falling short and having their licenses revoked, which in some instances were procured fraudulently.
The clean-up has brought to the fore some fundamental weaknesses in some investment decisions by some firms and individuals.