The Bank of Ghana is set to be awarded the the accolade, the “Central Bank of the Year” in Brussels, Belgium, in March this year.
This recognition, according to a statement published on the Central Banking Awards’ website, is in acknowledgement of the series of reforms introduced by the Ghanaian central bank to strength the financial sector, over the past two years.
By this award, the Bank of Ghana takes over from the Monetary Authority of Singapore (MAS) which was adjudged the overall winner last year.
Banking sector reforms
In January, 2017, the BoG took the bold initiative to reform its ailing banking sector.
Consequently, it announced a recapitalisation programme with a requirements of GH¢230 million for banks, but the figure was further increased to GH¢400 million.
This resulted in the revocation of the license of some local banks. These banks have since gone under receivership.
The entire process ended in 2019.
Impressive record for the Central bank
Organisers of the awards, said the BoG had an impressive record of achievement, especially with regards to the steps it undertook to save the undercapitalised and poorly managed banks.
The central Banking Awards said in its statement that the BoG “has dealt with this complex set of risks, which could have caused serious damage to the country’s economy”.
“The Bank of Ghana has an impressive record of achievement, but the most notable is its reform of a seriously undercapitalised and poorly managed banking sector. The central bank has dealt with this complex set of risks, which could have caused serious damage to the country’s economy”, the report emphasised.
The statement added that while the banking sector cleanup was the standout feature for BoG, its performance in other areas of its supervisory mandate also impressed some outside observers.
The African Central Banking Awards research was carried out by Christopher Jeffery, Daniel Hinge, Dan Hardie, Rachael King, Victor Mendez-Barreira, Alice Shen and William Townin.