The immediate past president of the Ghana Association of Banks (GAB), John Kofi Adomakoh, has called on the government to reduce its stake in state-owned banks to encourage greater private sector participation.

According to him, this move will improve corporate governance structures and enable these banks to expand beyond Ghana’s borders.

Speaking on the sidelines of GAB’s cocktail and networking event in Accra, Mr. Adomakoh emphasised the importance of allowing state-owned banks to operate with more autonomy, free from excessive government influence.

“We're just saying that these banks are coerced to lend to state-owned enterprises and get stuck in that type of business,” he stated.

“GCB must grow to begin to look like a NASSA, it must grow to begin to look like a Stanbic. It must grow and get out of Ghana, get into the African continent, spread, and diversify.”

He further argued that government ownership in banks should be minimised to create a more competitive and sustainable financial ecosystem.

“It’s not the business of governments to have shares in banks and in both [state-owned enterprises]. Government can have a smaller share, but it should allow the private sector to take the lead,” he added. “It improves governance in the institution, and once governance is improved, the bank also performs better and makes better investment decisions.”

Mr. Adomakoh’s comments come amid ongoing discussions about financial sector reforms and the role of government in banking operations.

Industry players have long advocated for a reduction in government interference in banking operations to allow institutions to function independently and competitively.