The Bank of Ghana (BoG) has reiterated that it is closely monitoring some developments among banks due to the Domestic Debt Exchange which is increasing liquidity pressures.
This is to help reduce any pressure on their balance sheet and consequently avert the probability of insolvency.
Speaking on behalf of the Governor at the Induction Ceremony of the Ghana Association of Restructuring and Insolvency Advisors, Head of Resolution Office, Elliot Amoako, said macro prudential risk assessment of the banking sector indicates an emergence of spill over from the current economic challenges on the banking industry.
He, however, appealed to the insolvency practitioners to support the regulator in making the financial sector stable.
“Indeed the Bank’s macro prudential risk assessment of the banking sector indicated the emergent of signs of spill overs from the current macro-economic conditions characterised by high inflation and rising interest rates to the banking sector”.
“In particular, pressures on solvency and liquidity of banks have increased and the Bank is closely monitoring these developments”, he added.
He, however, hinted that the regulator is working on regulatory relief measures to moderate the potential impact of this development.
Already, some regulatory relief measures have been lined up for banks to moderate the potential impact of the Domestic Debt Exchange Programme and ensure stability in the sector.
However, Mr. Amoako, said these requires close monitoring to avert insolvency in some institutions.
The Association of Restructuring and Insolvency Advisors is made up of professionals with an interest in restructuring and insolvency formed in 2006 to play a leadership role in corporate restructuring, business recovery and insolvency in Ghana.
Latest Stories
-
GPL: Accra Lions beat Hearts of Oak to go third
1 hour -
Seek higher grounds as rains intensify – GMet warns
2 hours -
May Day: Sam Ankrah promises to prioritise welfare and well-being of workers if elected president
2 hours -
Bawumia plans door-to-door campaign for 2024 polls
2 hours -
GAF condemns ‘unprovoked’ fatal shooting of soldier in Kasoa land dispute
2 hours -
OSP’s request for money laundering probe against Cecilia Dapaah baseless – AG advises EOCO
3 hours -
Obofour Raphael releases ‘Asem Yi Di Ka’ EP
3 hours -
‘Operation Clean Your Surroundings’: Popular Kenkey joint and public toilets in Takoradi shut down
3 hours -
GFA boss Kurt Okraku graces Dreams FC’s dinner to celebrate CAF Confederation Cup exploits
4 hours -
We’ve intensified efforts to combat misinformation, hate speech ahead of elections- Akufo-Addo
4 hours -
Sekondi-Takoradi: STMA/Joy News’ ‘Operation Clean Your Surroundings’ taskforce arrest 10 for open defecation
4 hours -
Joy Prime’s Prime Morning celebrates May Day with gallant Officers of Ghana Navy
4 hours -
YAWC Network Ghana chapter holds National summit in Accra
4 hours -
Memories of a Baby Univers
5 hours -
Akufo-Addo calls for peaceful elections, says politics shouldn’t divide us
5 hours