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QUESTION 1 As part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, the Bank of Ghana embarked on a clean-up

QUESTION 1 As part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, the Bank of Ghana embarked on a clean-up exercise in August 2017 to resolve insolvent financial institutions whose continued existence were thought to pose risks to the interest of depositors. In 2019, the Bank of Ghana released a statement saying it had completed its clean-up exercise of the banking and specialized deposit-taking (SDI), and non-banking financial institutions (NBFI) sectors. As a student of Financial Markets and Institutions, provide reasons for or against the cleanup exercise embarked upon by the Central Bank. 15 marks

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