Finance: Banks in Ghana must support the private sector more – Dr Addison says

The Governor of Ghana’s Central Bank, Dr Ernest Addison has called on banks in the country to increase its support for the private sector.

Dr Addison said the gains of the ongoing reforms in the banking sector and restoration of macroeconomic stability must compel the banks to assist other private businesses.

“The gains achieved in macroeconomic stability, together with the implementation of other policy initiatives, will provide some impetus to economic growth. Banks, therefore, must position themselves to scale-up their support for private sector-led growth.”

“The restoration of macroeconomic stability should provide some basis for improved financial intermediation to boost economic activities in the near-term,” he added.

He was speaking at the 2018 Annual Bankers’ Dinner in Accra. he explained that the banking sector can be described as one of the important pillars for the development of the country as expected by its citizens. He argued that there was the need for solid, strong and well-capitalised banks to support that cause.

“The sustainability of the banking industry is critical to achieving the high aspirations of Ghanaians. As such, all stakeholders must work to ensure that banks operate within an enabling environment that supports them to carry out their financial intermediation function.”

He added that it is the responsibility of all to ensure that the challenges in the sector are addressed in order to boost confidence in the sector.

“We should collectively work hard to regain the general public’s confidence through the introduction of prudent policies, regulations, and procedures to ensure the irreversibility of reforms introduced.”

Meanwhile, the President of the Chartered Institute of Bankers (CIB) Rev Mrs Patricia Sappor lauded the Bank of Ghana for the bold reforms it has implemented to restore public confidence in the banking sector.