bank_of_ghana
Head of Banking Supervision at the Bank of Ghana, Osei Gyasi
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Head of Banking Supervision at the Bank of Ghana, Mr. Osei Gyasi has said the recent banking sector reforms should impact positively on the macro-economy largely through the reduction in interest rates and a decline in non-performing loans among others.

He said this when making a presentation at the first in a series of round table discussions with the banking industry organized by Integrity Magazine. Speaking on the theme: “Ensuring Macro-Economic Stability Through Effective and Trusted Banking”, Mr. Gyasi further stated that the central bank was applying a multifaceted approach to reforming the financial sector to ensure a long-lasting impact on the economy.

“So, as we try to reform the financial sector our objective is to look at the bigger picture, how it is going to impact on the macroeconomy. The vulnerabilities in the banking sector have been addressed through a recapitalization process and regulatory reforms geared towards introducing efficiency in the way business is conducted. The efficiency is also expected to trigger competition which in the long run should exert a downward effect on the interest rate,” he said.

The editor-in-chief and publisher of Integrity Magazine, mentioned that the round table discussions are to serve as an opportunity for Banks to come together to brainstorm on steps that can be taken to ensure that they (the banks) contribute their quota to ensuring macroeconomy stability by ensuring that they are effective and trusted.

Meanwhile, after cleaning up the banking sector, the Bank of Ghana (BoG) is now set to raise GH¢7 billion from the government to support distressed savings and loans companies and other finance houses.

It is, however, unclear which module the central bank will adopt: either a purchase and assumption agreement, by which strong savings and loans companies will take up selected assets and liabilities of the insolvent ones, or consolidation of all the insolvent ones into a new savings and loans entity.

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