Benefitting from a broader increase in interest in frontier economies and strong headline growth, Ghana’s capital markets have performed well in recent years, with the Ghana Stock Exchange (GSE) Composite Index up 71.81% in 2013. Secondary listings and new initial public offerings (IPOs) and funds have increased investor options on the bourse, while a number of reforms have also been implemented and continue to be undertaken that could improve the soundness and stability of the sector over the…
From The Report: Ghana 2014
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For a frontier market, Ghana’s banking system is very developed. The sector has expanded rapidly over the past 20 years, and a number of new banks have been licensed. Six domestic banks were established in that time, while in the 1990s several foreign entrants moved in. Though most of the fundamentals are healthy, there are still a number of challenges that limit overall efficiency and performance. The sector remains unusually fragmented. On the other end of the spectrum, despite the existence of specialist rural banks and non-bank financial institutions, much of the country remains unbanked. As the sector consolidates, banks will get stronger and will be better able to take on larger deals; as regulations are refined, it will be better able to withstand shocks.
This chapter contains interviews with Kofi Wampah, Governor, Bank of Ghana (BoG); and Archie Hesse, CEO, Ghana Interbank Payment and Settlement Systems (GhIPSS).