2020 Budget: Banks Now "More Resilient" And "Well Positioned" To Support Economic Growth -  Ken Ofori-Atta

Finance Minister Ken Ofori-Atta seems satisfied with the massive reform of the banking sector some years ago.

According to him, the sector is now “well positioned to support the economic growth agenda of the government”, something he noted the nana addo-led government is happy with.

“Following the successful completion of reforms in the banking sector which begun in August 2017 and ended in January 2019, we now have a more resilient sector, well positioned to support the economic growth agenda of the government,” he told parliament during his 2020 budget presentation on Wednesday.

Adding that, “at the start of the reforms in august 2017, total assets were gh¢89.1 billion for a sector that had 36 banks, and two years after the reform process started, total assets have increased to gh¢115.2 billion at end august 2019 with only 23 banks,”

“In the same direction, total deposits have improved from gh¢55.7 billion to gh¢76.0 billion over the same comparative period, reflecting a stronger deposit base owing to more trust and confidence in the banking sector with fewer but stronger banks,” Mr Ofori-Atta said.

According to him banks are beginning to refocus on their core mandate of financial intermediation based on their strong capital base after the recent completion of the recapitalization exercise. 

He added that the Central Bank will continue to pursue policies and strengthen supervision to ensure that the banking sector remains well-capitalised, solvent, liquid and profitable and to also ensure that significant gains recorded in the aftermath of the reforms and recapitalization exercise are locked-in.

He assured that credit risk management practices and loan recovery efforts will be stepped up to minimize overall risks in the banking sector.