Banking Sector: BoG’s Actions To Spur Investor Confidence

EFFORTS by government and the Bank of Ghana (BoG) to save Ghana’s banking industry from collapsegive a positive signal to the country’s investor community and development partners, financial and investment analysts have stated.

The decisive measures announcedand taken by the regulator in efforts to promote the safety, soundness, and stability of the financial system and to protect the interest of depositors is set to provoke investor confidence in the Ghana’s economy.

Signs of a robust regulatory framework for business

Chartered Accountant and Chief Executive Officer of Dalex Finance and Leasing Company, Mr Kenneth Thompson told this paper, recent happenings in the banking industry and responses from government and regulatory institutions are just good enough to sustain investor interest in the Ghanaian economy.

“It shows that we are capable of managing our own affairs; shows that we can deal with our issues when we have them and makes investors confident about doing business in Ghana; the good signal is that our regulatory framework is robust and that we have the institutions that allow people to save and to innovate,” Mr Thompson said.

Agreeing with Mr Thompson, Lecturer in Public Administration at the Ghana Institute of Management and Public Administration (GIMPA), DrRazielObeng-Okon said the BoG’s seriousness at ensuring financial stability and credibility of the entire financial system is a positive signal to the investor community.

“The international community is watching and they will undoubtedly have greater confidence in our financial system and in the Ghanaian economy because a robust financial system is what investors are looking for ,” Dr Obeng-Okon said.

BoG action was decisive, commendable

“Dealing with the issues of Capital and UT banks and then the recent five banks is quite decisive so you can see that it’s a well thought out plan which deserves commendation, “the Dalex Boss added.

According to him, measures so far taken are bold, bearing in mind the fact the current Governor inherited most of the challenges that are playing out.
Actions impact BoG’simage

Mr Thompsonmaintains that “the example you set for institutions have a long standing impact on the institutions and on the leader of that body.”

According to him, for the Governor, it’sabout his career; it’s about how he wants his name to go down in Ghana’s history.

“The governor needs to be commended for taking measures to protect the integrity of the financial sector and depositors’ funds,” he stated.

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