Address financial sector challenges forcefully – President urges BoG

By Ken
Sackey, GNA

Accra, Aug. 18, GNA – President Nana Addo
Dankwa Akufo-Addo has urged the Bank of Ghana (BoG) to forcefully address the
current challenges of Ghana’s banking sector in order to guarantee the nation’s
financial stability and sustained economic growth.

He said it was crucial for the BoG to entrench
reputation and credibility in the financial system in order to accelerate
government’s transformation agenda.

“My understanding is that a road map for
addressing banking sector weakness is being implemented. I urge you, as the
nation’s Central Bank, to remain committed to the process and to address the
challenges confronting the banking sector.

“This will not only guarantee financial
stability, but also promote greater confidence in that sector”, President Akufo-Addo
said at the opening of BoG’s 60th Anniversary Lectures and
Exhibition in Accra.

The event, under the theme: “Celebrating 60
Years of Central Banking in Ghana: Achievements, Challenges and Prospects,”
rounds off activities to mark the Central Bank’s anniversary.

President Akufo-Addo stressed the need for a
stronger partnership between the Government and the BoG to enable the Bank to
play a pivotal role in formulating and implementing policies that would assure
the economic transformation of the nation.

“I want to stress that the current
socio-economic challenges of our beloved Ghana demand that every hand should be
on deck. I wish to reiterate my call for stronger partnership, as well as
greater degree of policy coordination, between the Bank of Ghana and the
Ministry of Finance.”   

“This call is for the Bank, within its remit
of operational independence, to play a pivotal role in formulating and
implementing policies that will enable the economic transformation of our
nation that we all desire,” he said.

The President lauded the recent measures taken
by the BoG in

intervening decisively over the matters of UT
Bank and Capital Bank.

He said the move was a demonstration of the
Bank’s preparedness “to act in a manner worthy of a responsible Central Bank,
and a praiseworthy regulator,” adding; “I am confident that you have the
support of the nation.”

President Akufo-Addo noted that the Bank had
remained at the forefront in developing and deepening the financial market in
Ghana and that it was of utmost importance for it to continue to fulfill that
role and address all challenges.

He said the burden of maintaining stability
was not that of the Central Bank alone but Government had a role to play.  

“We are committed to the path of fiscal consolidation.
We must do this so that the Bank of Ghana can concentrate on what it was set up
to do. Persistent and excessive fiscal deficits get in the way of the Bank’s
core mandate,” he said.

The President stressed Government’s commitment
to ensuring that Ghana’s overall fiscal deficit remained within a reasonable
range of between three to five per cent, beginning from 2018.

He said Government was also working
assiduously to offset the huge energy sector-related debt that threatened the
stability of the country’s banking system.


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