The Bank of Ghana expects banks to rebuild capital buffers quickly, especially with equity capital injections by shareholders to build resilience and give a further boost to the economy.

This is due to strong growth in profits of banks following the significant losses posted in 2022 on account of the Domestic Debt Exchange Programme.

Speaking at the 40^th Annual General Meeting of the Ghana Association of Banks (GAB), the Governor of the Bank of Ghana, Dr. Ernest Addison, assured that early operationalisation of the Ghana Financial Stability Fund should help provide additional recapitalisation support for eligible banks in line with the criteria and governance framework agreed with the International Monetary Fund and the World Bank.

He used the platform to once again assure the public that, on the back of the DDEP and other emerging risks in the banking sector, the Central Bank will continue to monitor developments in the banking sector and, where need be, take appropriate and decisive actions to address emerging issues.

Additionally, the BoG will ensure that depositors’ funds remain safe and that the financial system remains stable and resilient.

“The Bank appreciates the collaborative approach adopted by GAB and we encourage the association to continue to engage on issues with the aim of building a resilient banking system, within the confines of the law.”

Continuing, the Governor said the Bank of Ghana remains committed to promoting a strong, stable, and viable banking industry to support the country’s growth agenda.

“While several policy measures have been implemented over the recent past, a lot remains to be done to promote a more resilient banking industry. Going forward, the Bank will continue to strengthen its regulatory and supervisory framework to promote confidence in the financial system”.

In addition to sustaining the profitability levels recorded by banks in the first eight months of 2023, the Governor said the Bank of Ghana will address specific risks from high-performing Loans, poor corporate governance and poor risk management systems to promote stronger risk management in banks including cyber and information security-related risks.

Again, the regulator will continue to roll-out the Basel II/III capital standards aimed at enhancing the resilience of the banking sector.