Bank deposits have risen significantly over the last few months after the banking sector reforms, Head of Banking Supervision at the Bank of Ghana, Osei Gyasi has said.
Mr Gyasi said there has been improved customer confidence among traders that banks that survived after the reforms are capable of holding their funds.
He was speaking at the CEOs Breakfast meeting by the Ghana Investment Promotion Centre (GIPC) in collaboration with JoyBusiness.
According to him, the outlook of the banking sector is positive and the central bank is committed to fully implement all rules and regulations which will ensure a stronger financial system.
He said, “The information we’re getting indicates that there is a growth in deposit after the reform. This is because most of our market women and traders now believe that the remaining banks that survived the reform are strong and capable of managing their funds.”
He added, “There has been a growth in confidence which is resulting in the deposit growth. We at the Bank of Ghana shall continue to implement the various laws and policies that have been enacted to see a robust banking sector. We are committed to fully implementing all the regulations that will see the Ghanaian banking sector grow to the highest peak.”
He, however, admitted that some banks lost customers as a result of panic withdrawals that hit the sector during the reform.
Chief Executive of the GIPC, Yofi Grant commended the effort by the central bank to strengthen the banking sector.
“Anytime I meet investors both in the country and outside the country, the major discussion is always on the financial sector and the reforms by the bank of Ghana which they expressed confidence that it will spur economic growth.”
He said, “I can assure you that our international investors are behind you and we at the GIPC fully support all the reforms that aimed at strengthening the banking sector. The private sector needs funds to expand and any policy reform that will help in that direction is welcomed.”
Former President of the Association of Ghana Industries (AGI), James Asare Adjei on his part appealed to the banks to lend to the private sector businesses especially the indigenous ones.
“We have heard from the Bank of Ghana that deposit is growing on the back of the reforms but businesses continue to struggle for credit. Despite the numerous calls by industries that we need their support, lending is still on a low side. The private sector needs the funds to help the economic growth especially the local manufacturers that are competing with multinationals that get credit facilities at cheaper rates from the countries,” he noted.
The former AGI boss also renewed calls for the government to implement a fixed exchange rate system to help importers and exporters during their transactions. According to him, the current fluctuations in the currency is a major challenge for Businesses in the country.
The forum is part of initiatives by the GIPC to attract investors into the economy and also to help meet its target of $10 billion investment by the end of the year.
The theme for the event was ‘Ghana’s banking sector reforms: opportunities for the private sector.’