In a resounding display of commitment, banks in Ghana are joining hands with the government, relevant ministries, the Bank of Ghana, and other regulatory bodies to spearhead a swift economic turnaround.
The President of the Ghana Association of Banks (GAB), Mansa Nettey, asserts that this unified effort is crucial in maintaining a robust banking industry that can effectively fulfill its mandate.
Strategic Planning for Stability
Addressing the 40th Annual General Meeting of the GAB, Mansa Nettey, also the Managing Director of Standard Chartered Bank, emphasized the necessity for member banks to continue their meticulous scenario planning and stress testing.
This, she states, will be complemented by rigorous market research, implementation of a more fortified risk assessment and management system, and potentially, hedging of balance sheet positions.
The GAB, under Nettey’s leadership, is poised to conduct seminars on the principles of capital adequacy and liquidity of banks. These events will serve as a platform for key stakeholders in the banking sector to engage in extensive deliberations.
The objective is to enhance the overall understanding of these principles that underlie the determination and application of the capital adequacy ratio in banking operations, all while ensuring compliance with crucial regulatory requirements.
Adapting to Economic Shifts
This proactive stance follows the unveiling of the Domestic Debt Exchange Programme and its profound impact on both banks and the broader economy. Nettey reiterates,
We will continue to embark on seminars on principles of capital adequacy and liquidity of banks which will provide the platform for key stakeholders in the banking industry to hold extensive deliberations on the subject and improve general understanding of stakeholders on the principles underlying the determination and application of capital adequacy ratio in banking operations, while meeting pertinent regulatory requirements.”
AfCFTA: Gateway to Expansion
Nettey underscores the significance of the African Continental Free Trade Area (AfCFTA) for institutions within the banking sector. This monumental development offers an unparalleled opportunity for collaboration and business expansion.
Banks can leverage this platform to broaden their clientele base, facilitate credit for businesses through intermediation, and play a pivotal role in reducing unemployment by generating direct employment opportunities.
Accelerating Financial Sector Growth
In addition to the above, the banking sector, in tandem with AfCFTA, can significantly expedite the development and growth of the financial sector.
By actively participating in key sectors, banks can serve as enablers, bolstering critical industries and driving sustained economic progress. Ghanaian banks, under the aegis of the GAB, stand poised at the vanguard of economic revitalization.
Through collaborative efforts and strategic planning, they are not only fortifying the banking industry but also contributing substantively to the broader economic landscape. With a watchful eye on both domestic and international developments, these banks are poised to steer Ghana towards a future of economic prosperity.
