Banking sector cleanup more beneficial than jobs lost through the exercise says Professor Boadi
The Dean of the Faculty of Accounting and Finance at UPSA further explained that though jobs were lost, depositors needed to be prioritised
Professor of Accounting and Finance at the University for Professional Studies, Accra, UPSA, Isaac Boadi, has admonished critics of the banking sector cleanup to look at the benefits of the exercise than the negative effects it brought.
Speaking at the ABC News’ Economic Symposium on the State of the Economy at the Christian Service University in Kumasi on Thursday, 25 July 2024, Professor Boadi noted that the cleanup brought much more benefits than the job losses people talk about.
“The decision to sanitize the banking and financial sector was the best option under the circumstances the current administration came to meet it. The benefits far more outweigh the challenges therein” he stated.
The Dean of the Faculty of Accounting and Finance at UPSA further explained that though jobs were lost, depositors needed to be prioritised.
“It is true that some 4000 workers were retrenched as a result of the banking sector cleanup, 4.6 million depositors would have lost their deposits in those banks”
Under such a situation, any rational person would choose to save the sector since many more people would have lost their monies and plunged into poverty.
“If you are presented with the decision to save either 4000 jobs or 4.6 million depositors and their deposits, I think the latter would be prioritized, and that’s what actually happened” he stated.
Professor Boadi reminded Ghanaians of the repercussions of the cleanup had not been effected.
“We have not addressed our minds to what would have happened if the cleanup exercise had not been done. In the end, depositors would have lost their investments or deposits and the 4000 employees would also have lost their jobs.
“This implies that about 4,604,000 people would have suffered if the cleanup had not happened. There was no other option for the government than to save depositors and their deposits” he added.
The ABC News’ Economic Symposium in Kumasi was the sequel to the maiden one held in Accra two months ago.
Reporting by Wilberforce Asare in Accra
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