We’l continue with sound policies — Dr Acquah

Story: Boahene Asamoah

THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.