Banking
From The Report: Ghana 2019
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Ghana’s banking industry has undergone a challenging period in recent years, weathering an economic downturn and a rising tide of non-performing loans. While delinquent debts have undermined sector stability and remain a key challenge, the country’s lenders continue to grow their assets and remain profitable. With a wholesale regulatory reform of the sector well under way, the prospects of continued expansion by a strengthened and revitalised sector are good. Moreover, stronger economic growth and increased stability among lenders is expected to boost sector performance in 2019. Most ratings agencies anticipate a return to loan growth and rising fee incomes as confidence returns to the industry after its recapitalisation. This chapter contains interviews with Ernest Addison, Governor, Bank of Ghana; and Daniel Addo, CEO, Consolidated Bank Ghana.

Articles from this Chapter

Overview

Strength in numbers: A raft of reforms, including stricter capital requirements, aim to improve stability
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Ghana’s banking industry has undergone a challenging period in recent years, weathering an economic downturn and a rising tide of non-performing loans (NPLs). While delinquent debts have undermined sector stability and remain a key challenge, the country’s lenders continue to grow their assets and remain profitable. With a wholesale regulatory reform of the sector well under way, the prospects of continued expansion by a strengthened and revitalised sector are good. Deep Roots Prior to the…

Interview

Growing improvement: Ernest Addison, Governor, Bank of Ghana, on policy direction and regulating innovation
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Interview :Ernest Addison What factors have contributed to the strengthening of Ghana’s economy, and what challenges remain? ERNEST ADDISON: Ghana’s three main export commodities – cocoa, gold and oil – have recently experienced robust growth in production. Gold exports are up and cocoa has stabilised at just over 850,000 tonnes per annum, but oil production has seen the most significant change. From an average export of 32m barrels per day (bpd) between 2011 and 2016, crude oil exports…

Analysis

Smart money: The rise of mobile money presents traditional lenders with both opportunities and challenges
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One of the most productively disruptive elements in the domestic banking sector is carried by an increasing number of Ghanaian citizens. The smartphone, which was until recently the preserve of a relatively small segment of the population, is rapidly being taken up by the emerging middle class and, in turn, driving a mobile payment boom. For banks, this has provided new revenue channels and inflows from the telecoms companies (telcos) at the helm of the mobile payment expansion in the region. Nevertheless,…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape – Ghana 2019
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Once reserved for ambitious start-ups and industry-leading operators, financial technology (fintech) has caught the attention of private sector firms and government planners alike, becoming a regular feature in budget speeches and development plans. As fintech plays a larger part in the lives of consumers, investors have come to recognise its growth potential. Tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and by some 30% in 2017 alone. Fintech is rapidly advancing across global markets. While the concept was pioneered in developed countries, the fluidity of international…

Interview

Evolving values: Daniel Addo, CEO, Consolidated Bank Ghana, on the growth of indigenous banks and lending to small businesses
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Interview :Daniel Addo In what ways have indigenous banks been increasing their presence in the market? DANIEL ADDO: Indigenous banks have played a vital role in the Ghanaian economy, and today their role is growing. Historically, their presence greatly outshone foreign banks, which were largely European or South African. However, in 2003 the banking sector began a growth path that was stimulated by an influx of African banks, mainly Nigerian, which led to foreign banks outnumbering their…