GNCCI applauds BoG; calls for better-regulated banking sector

GNCCI applauds BoG; calls for better-regulated banking sector
Source: Ghana| JoyBusiness | JAD
Date: 09-08-2018 Time: 07:08:31:pm

The Ghana National Chamber of Commerce and Industry (GNCCI) has urged the Bank of Ghana to strengthen its supervisory and regulatory mechanism in order to build safe, sound, and stable banking sector. 

GNCCI has also welcomed the steps taken by the BoG to consolidate the five distressed banks into Consolidated Bank Ghana Limited.

In a statement signed by the Chief Executive Officer of GNCCI, Mark Badu-Aboagye, the chamber applauded the BoG for taking such a bold and decisive initiative to prevent what would potentially have been a major crisis in the financial sector of the country’s economy, of which the private sector would have been a major victim.

“While the chamber encourages the establishment of indigenous banks to play a major role in the financial sector of the country’s economy, it would like to recommend strongly that interested Ghanaian investors in the banking industry should team-up their resources, both financial and human capital, to establish strong and profitable banks to withstand the vagaries of the highly competitive banking industry.”

It said these initiatives taken by the BoG to ensure a safe, sound and stable banking sector were critical and timely to maintain confidence in the financial sector and to ensure that the private sector credit growth was unimpeded.

“Businesses need credit to expand to be able to create more and better jobs. Any disruption in the banking sector affects the majority of businesses and individuals who rely on banks for their credit and investment needs,” it added.

The chamber said it expects the current restructuring of the banking sector and the financial system would contribute to strengthening the real economy.

According to the statement, there should be a concerted effort to ensure that growth in the banking sector was commensurate with growth in the real economy, including agriculture and industry.

“Officials from the BoG and the affected banks whose actions and inaction have resulted in this dire situation must be investigated and brought to book where necessary. Continuous inspection and enforcement by the BoG is critical in ensuring financial stability,” it said.


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