The GIPC ‘Ghana on the Go’ CEOs’ Breakfast Meeting- which forms part of the four (4) quarterly meetings scheduled for 2019, came off on the 29th of March 2019 at the Labadi Beach Hotel in Accra.
The meeting, themed “Ghana’s Banking Sector Reforms: Opportunities for the Private Sector” focused on the recent reforms in Ghana’s banking sector and explored the available opportunities for private sector companies and industry practitioners.
Key speakers at the event were the Head of Banking Supervision at the Bank of Ghana- Mr. Osei Gyasi, Country Senior Partner, PwC Ghana- Mr. Vish Ashiagbor, Chief Executive Officer, Asadtek Group- Mr. James Asare- Adjei and Chief Executive Officer of the GIPC Mr. Yofi Grant.
Mr. Yofi Grant, in his welcome address commended the effort by the Central Bank to strengthen the banking sector. He stated that there is a new economy emerging as Ghana gets more competitive as an investment destination.
Expressing delight at the banking sector cleanup, he opined that the sector is getting stronger and is therefore creating investor assurance of a more stable banking sector for further opportunity. Mr. Grant emphasized the role of technology in the market, adding that last year alone, total banking transactions via mobile and e-money platforms was in the region of US$52 Billion.
The Head of Banking Supervision at the Bank of Ghana- Mr. Osei Gyasi in his presentation on Policy Perspectives of opportunities created by the reform highlighted two essential topics; Foundation for functional financial sector reform and Multiple functions of the financial system. He further stated that as part of the reforms, the Bank of Ghana has intensified both its regulatory and supervisory role. Mr. Osei Gyasi said that unlike in the past, the current approach of reforms is to place as much importance on the quality of capital to support the much-needed economic transformation and resilience of the system.
“The reforms have promoted good corporate governance in the industry. The Corporate Governance Directive and the Basel Regulatory Capital Requirements Directive issued by the Bank of Ghana will ensure efficient governance and control of the banks by exerting both internal and external pressures, as well as discipline on banks’ operations”
Concluding his presentation, he added that Solvency and liquidity of banks will create the opportunity for businesses to grow sustainably.
The Country Senior Partner, PwC Ghana- Mr. Vish Ashiagbor presented on the Banking Sector Reforms: Perspective of the private sector. He gave an overview of the banking industry, recent reforms and expected impact and the perspective of bank executives.
He indicated that banks are generally optimistic of the existence of opportunities to pursue in order to generate the required returns after the banking reforms. He said that in a survey carried out by the PwC, banks alluded to the current stability in the economy, Government’s planned initiatives in the energy, infrastructure and industry sectors, as well as reforms in the agricultural sector as possible sources of business opportunities going forward.
Mr. James Asare- Adjei- Chief Executive Officer of Asadtek Group asserted that access to credit must be made easier and more affordable than what is being experienced. He urged the Bank of Ghana to be tactful with their planned clean-up of Microfinance and Savings & Loans as these institutions serve as a source of alternative funding for SMEs.
Plenary discussions after the Breakfast meeting highlighted the effects of the reforms implemented by the Central Bank, when the reforms would be initiated within the Savings and Loans subsector and the expected ROI of 21% funding for the five indigenous banks supported by the Ghana Amalgamated Trust.
Other discussions centred on alternative financing options available from the banks toward private businesses, the issue of Compliance within financial institutions, and the specific measures the central bank is implementing to protect depositors’ monies.
Source: GIPC Corporate Affairs