BOG Checks Bad Behaviour In Financial Sector

Governor of the Bank of Ghana (BoG) Mr. Ernest Addison has announced that it has started enforcing fit and proper guidelines for Shareholders, Directors and Key Management Personnel of Banks and other supervised Non-Bank Financial Institutions.

This, according to him, would ensure bad behaviour is not recycled within the financial sector.”

He made this known when speaking at the Commissioning of the Ecobank Head office building.

His statement is in connection with the license revocation of two commercial banks, UT Bank and Capital Bank, which occurred last year.

The action was triggered by the inability of the two banks to turn around their negative capital adequacy position.

However, Bank of Ghana, in its quest to prevent such happenings, has stated that it would reposition the financial Lending Rates

sector to enhance the quality of capital to withstand volatilities and unexpected losses, and to strengthen corporate governance standards.

Touching on lending rates, the Governor joined the President in calling on industry players to respond to the improvements in the macro-economy and lower lending rates.

This, according to him, would go a long way to catalyse the gains made and help strengthen and promote stronger economic growth, job creation and general prosperity.

According to the Governor, “the macroeconomic fundamentals has improved significantly; with the large fiscal and current account deficits unwinding, inflation gradually trending towards the medium-term target of 8±2%, stability in the foreign exchange market supported by improved liquidity conditions, strong reserve build-up, and rebound in economic growth on the back of increased crude oil production and other pro-growth government policy initiatives.”

In line with these improving economic conditions, he hinted that the Bank of Ghana’s Monetary Policy Committee cumulatively lowered the monetary policy rate.

He further mentioned, “With the continued improvement in the economic environment, coupled with the on-going reforms in the banking sector, it is expected that the benefits will be seen in lower lending rates.”

By: Emmanuel Yeboah Britwum/ [email protected]