The recent recapitalisation exercise embarked on by the Bank of Ghana (BoG) has helped to restore confidence in the banking industry, Osei Gyasi, Head of Banking Supervision at the BoG has said.
He said following the exercise which ended on December 31, 2018, that has all the 23 banks meeting the new minimum paid-up capital of GH ₵400 million, sanity had been brought into the banking industry.
Mr Gyasi made this known in Accra on Tuesday at a roundtable organised by the Integrity Magazine and Fidelity Bank Ghana Limited on the topic “Building a strong macro economy through effective and trusted banking.”
“Currently, the citizenry confidence in the banking industry has increased deposits, as shown in the balance sheet of the various banks. The banks now have enough liquidity to pay clients and transact businesses,” he said.
Mr Gyasi said the reforms instituted by the Central Bank, following the recapitalization exercise had help to improve the expertise of the staff of the various banks.
He said the BoG as parts of it reforms, frequently organized training programmes for the staff of the financial institutions in the country, as well as fit and proper test for those at the top hierarchy.
Mr Gyasi explained the fit and proper test was to enable the BoG to thoroughly scrutinize and ensure persons employed to head sensitive positions in a bank had the required skills and knowledge.
The Director of Finance at Fidelity Bank Ghana Limited, Mr Atta Gyan said the role played by the financial sector in exacerbating the 2008 financial crises, had eroded trust in the banking industry.
“Locally, but for the central bank’s intervention in ensuring that depositors and other creditors do not lose their moneys, the trust would have been significantly eroded,” he said.
He mentioned low Gross Domestic Product growth rate, high inflation, high interest rate, weak currency and high fiscal deficit as some factors which weakened banks and the financial system.
BY BERNARD BENGHAN