President Nana Addo Dankwa Akufo-Addo has defended the government’s decision to undertake a banking sector clean-up that led to the collapse of nine indigenous local banks, dismissing allegations that the move was driven by vendetta.

Addressing Parliament during his final State of the Nation Address, the President explained that the clean-up was necessitated by widespread illegalities and irregularities within the sector, which jeopardized the stability of the financial system.

"The activities of the collapsed banks were plagued with significant breaches of regulations, and these irregularities are well documented," President Akufo-Addo stated.

He emphasized that the primary motivation for the intervention was to protect the savings of customers and to build a resilient banking sector capable of supporting economic growth.

He stated that no deposits were lost as a result of the clean -up exercise.

"This action was based on data, not a vendetta. As a result of the clean-up, the savings of millions of customers have been safeguarded, ensuring confidence in the financial system," he added.