Banking is essential to the proper functioning of an economy. It is akin to oil in an engine or blood in a human. Without it, a system can exist but without much to its good name.
In Ghana, currently, there are 23 Banks of which 14 are foreign-controlled and 9 are domestically-controlled.
At the end of December 2018, the banking sector had made out a total of GH¢36.5 billion in loans. As a growing economy, where do you think loans should be channelled to the most?
On Thursday’s edition of PM EXPRESS: BUSINESS EDITION sought to establish why the banks have this lending behaviour and what can be done about it.
A banking consultant, Nana Otuo Acheampong, believes banking is a risk and as such it will not be prudent to take short-term deposits and channel them into long-term sectors such as agriculture. He believes government intervention is needed in such areas.
Humphrey Ayim-Darke argues this is a reflection of our economic structure and fundamentals and as such is the only response by the banks to the economic model the country has adopted.
As an industrialist, he is pushing for the establishment of banks that will support these sectors as was done in the 1970s in Ghana where specialized banks where established to cater to the agricultural and industrial sectors.
Latest Stories
-
Let’s tackle root cause of child begging-Population Council
12 mins -
Musicians and actors battle it out at Nhyira FM’s “Cook for Mum” Promo
29 mins -
Manu, who delayed Ghana’s 4x100m baton, had never received a baton before – Coach
35 mins -
Government targets value addition to transform economy – Alan Kyerematen
1 hour -
Water crisis in some communities in the Savelugu district
1 hour -
Institute standardized rules for all senior high schools – Kofi Asare to GES
1 hour -
Don’t fight illegal mining with illegality – Ken Ashigbey to government
3 hours -
We didn’t pollute River Pra, it is essential for mining activities – Association of Small-Scale Miners
3 hours -
Ex-Vicar General of Konongo-Mampong Diocese commissions classroom block for childhood school
3 hours -
Taylor Swift becomes first woman to win BRITs Global Icon award
4 hours -
GHS to prioritise earliest recipients of first jabs in 2nd Covid-19 vaccine roll-out
4 hours -
Legon Cities awaiting FA decision on Dwarfs clash – Communications Director
4 hours -
Customs driver jailed for selling official vehicle
4 hours -
Illegal Mining: Court declines to remand or bail alleged security operatives
4 hours -
EC considering decentralising collation centres to electoral areas in 2024 – Bossman Asare
4 hours