Chief Executive Officer of the GAM-ANK Group and Africa Investment Group, Dr Sam Ankrah says the time has come for commercial banks to move from collaterals before they extend credit to customers.

A lot business according to the Association of Ghana industries see access to credit as one of the major Hurdles affecting their growth.

But speaking at the Ghana Banking Awards on Saturday, Dr Ankrah says this practice must be reviewed to aid the growth of businesses in the country.

He also expressed serious concerns with the lack of interest by commercial banks in supporting young men and women who want to venture into agriculture.

He added that “our young men and women of today are including graduates are eager to get into farming and yet our banks are reluctant to lend to them the needed capital to start their projects, are they are sitting down asking for collaterals and after collaterals”.

He noted that its time that banks “structure their transactions based on credibility and viability of the businesses rather than demanding collateral always.

Dr. Ankrah was also worried that the revenue from the oil sector that was invested over the years has just accrued $448 million at a rate of 2 percent and 2.5 percent respectively.

“Were is the justification for investing these funds outside, when our country is in dire need of injection of funds to stimulate businesses, whiles domestic banks are starved of liquidity with some of them on the verge of collapse, Again where is the justification, at a time that we are borrowing with conditions that are not necessarily in our sovereign interest.”  

He called on laws covering the management of Ghana’s petroleum funds to be reviewed immediately.

For Dr. Ankrah banking is all about looking at new ways to addressing the needs of individuals, business start-ups, however, there are far too many stories which seek to suggest that banks have failed to take a lead role in the economy.

He said he’ll want to see more startups access funds locally from our industries using proven methods like structured finance approach without the call for other securities which in its self  is an insurmountable barrier.  

ECOBANK was on the night adjudged the overall Bank of the year.