Economy Can Withstand Crisis-BoG Governor

The Governor of the Bank of Ghana, Dr Paul Acquah, has stated that the world financial crisis if not mitigated will roll back Ghana’s considerable gains made in terms of economic growth and financial stability.

He said the economy needs a strong regulatory framework and sound financial system as a prerequisite for the growth of a healthy and stable economy.

He was speaking at the 8th Ghana Banking Awards gala last Saturday, which was on the theme: “Enhancing Confidence in the Ghanaian Financial System, in the midst of the Global Financial Crisis.

Dr Acquah said the fallout of the financial crisis on financial institutions that have been weakened under the wake of the crisis.

He explained that the impact of the crisis on Ghana is limited because the prices of goods remain relatively normal.

He, however, noted that an effective and prudent supervision of the financial system that is enforced evenly will create sustained stability in the country’s economy.

Dr Acquah said the country’s economy is in a position to withstand the global financial crisis but needs prudent financial management practice to achieve this.

He said one of the lessons from the global financial crisis is the need for a sound financial sector for the healthy growth of the economy.

The governor said the awards create an excellent platform for banks to compete and develop creativity in the banking sector.

Dr Acquah mentioned that the Bank of Ghana introduced certain measures to re-enforce the stability of the banks in the country. He mentioned some of these as the increased minimum capital of the bank s from GH¢ 7.0million to GH¢ 60.0 million.

He again mentioned the recognition of ICT in financial service delivery and also a common electronic platform, e-zwich, was established in furtherance of the development of the payment and settlement system, making it possible to link all banking institutions with a biometric smartcard as a vehicle for the financial inclusion of everybody.

Dr Acquah said to build confidence and trust of the public, the banks need prudent borrowing and respect for loan contracts with serious commitment to honouring debt obligations.

He therefore urged the banks to introduce innovation and creativity by modifying their services to appeal to the needs of the customer.

Zenith Bank Ghana Limited was declared the 2008 Bank of the Year for its achievement as the highest scoring bank in all the categories assessed by corporate customers.

The categories include best bank in retail banking, corporate banking, financial performance, advisory services, trade finance and customer care.

The bank also won second position for the Best bank in short-term loan financing and the best growing bank, third position for the best bank financial performance.

The awards night was orgainsed by Corporate Initiative Ghana (CIG) in consultation with KPMG.

Other banks that won awards were the United Bank of Africa, best bank in customer care, International Commercial Bank, best bank in advisory services, Cal Bank, best bank in product innovation, Ghana Commercial Bank, best bank in competitive pricing and the Intercontinental Bank, best growing bank.

The Corporate Affairs Director of CIG, Mr Willing Vanderpuijie, said the banking awards were introduced to improve the quality and efficiency of delivery of financial services to the banking population in Ghana.

This awards scheme has gone a long way to promote creativity and foster development among banks in the country.

He appealed to the banks to continue to support the awards scheme to create the conducive environment for customer satisfaction in the banking sector.

Source: Daily Graphic
Posted: 11/05/09 ________________________________________