Abdul-Nashiru Issahaku: Developing Ghana's banking system
Speech by Dr Abdul-Nashiru Issahaku, Governor of the Bank of Ghana, at the inauguration of
the Sunyani regional office building, Sunyani, 30 June 2016.
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Nananom
Board of Directors of Bank of Ghana
Representatives of Banks in the Brong-Ahafo Region
Representatives of Security Agencies in the Brong -Ahafo Region
Heads of Departments
Regional Managers
My cherished members of staff
Distinguished ladies and gentlemen
Good morning
I am delighted to welcome you all to the inauguration of our new Sunyani Regional
Office building. Let me sincerely thank the Chiefs and people of Sunyani, in fact, the Brong
Ahafo Region for making the land available to us. This is a clear indication of the support
and collaboration between the Bank and the Chiefs.
And let me also take this opportunity to thank the immediate past Governor of the Bank of
Ghana Dr. Henry Kofi Wampah for spearheading this project and seeing to its completion.
As we may all be aware, prior to the construction of this ultra-modern office complex,
the Sunyani Regional Office had operated from the second floor of a building whose lower
floors were occupied by GCB Bank. The regulator sharing office with the client is not
ethically sound and exposes the Bank to familiarity threats.
In addition, the former Office did not have a banknote processing capacity and depended
on the Kumasi Regional Office for the processing of its deposits as well as fit-sorting banknotes
for re-issuance to banks and other financial institutions in its catchment area.
We have been under pressure and in a hurry to catch up and provide the facilities
necessary to deliver the required services in the region and make a difference. The
inauguration of this magnificent Sunyani Regional Office with adequate space for a banking
hall to be serviced by four tellers, an office space for Cheque Codeline Clearing supported
by a back office to serve customers, and fully equipped offices, is one of the eloquent
testimonies to show that the Bank of Ghana is living up to expectations for posterity in this
region and the country as a whole.
Beyond providing this beautiful edifice to reduce the stress in relation to inadequate office
accommodation for workers, we have also made provision for a Cash Processing Centre which
is yet to have the full complement of machines. A state of the art electronic security and
fire- fighting systems have been installed to ensure maximum security, and staff welfare
has also been catered for by providing a canteen and gymnasium.
Mr. Chairman, ladies and gentlemen, the story of this beautiful edifice started about twenty
years ago when the Bank acquired the current location for an office. There were some
hitches that caused delays in the implementation process as contracts had to be
terminated and re-awarded a couple of times before Messrs Micheletti and Company
Limited finally brought the project successfully to an end in December 2015.
Ladies and gentlemen, after this inauguration, the Sunyani Regional Office would also operate
as a Cash Processing Centre. To this end, arrangements are underway to provide the
Regional Office with banknote processing capacity to enable it do fitness-sort deposits of
the Deposit Money Banks in the catchment area of the Office. Therefore, when the Office
becomes fully operational, it would augment the services of Kumasi Office in churning out
clean banknotes, devoid of counterfeits, to citizens in the northern sector of the country.
Ladies and Gentlemen, while seeking to manage cash efficiently to protect its integrity and
engender confidence in its use, it is important to remind ourselves of large cash holdings
outside the formal financial system which continue to exert inflationary pressures on the
currency and render the conduct of monetary policy a daunting task. It is hoped that this
Regional Office and the enhanced scope of activities, will present yet another opportunity
to banks, rural banks, non-bank financial and microfinance institutions to come up with more
innovative products to mobilise more idle cash resources in the informal sector into the
formal banking system.
Mr. Chairman, the mandate of the Bank of Ghana includes promoting the safety and
soundness of the payments system, which also comprises the Electronic Money
(emoney) Platform, and consequently enhancing users' confidence in its usage. As we do
periodically for all our issued guidelines to achieve greater effect, the Bank of Ghana is
currently reviewing the existing guidelines governing the use of e-money with a view to
developing a Legislative Instrument (LI) to guide its operations. We recognize that any
disruption or failure in the scheme will have an adverse impact on the public's confidence
in electronic payment instruments. The Bank of Ghana is hopeful that the review will
streamline its use and encourage greater participation from the unbanked sector of our
population.
Mr. Chairman, permit me to share some other thoughts with you. The issue of fraudulent
activities by some microfinance institutions (MFIs), especially in the regions, brings to the
fore considerations for beefing up communication delivery in the regions in situations where
information, education and clarification are necessary. The Bank of Ghana is currently in the
process of establishing Regional Public Affairs offices manned by trained PR practitioners
to link the head office up with local media who seek information and clarification about
the Bank's operations, grant interviews or carry through some media-related activity, and
boost the media relations programmes of the Bank. This would make it easier to know the
local media and be immediately available to receive enquiries from them for the purposes
of channelling them appropriately for action to be taken.
Distinguished Guests, Ladies and Gentlemen, the Bank of Ghana has the noble intention
of nurturing the microfinance sector in Ghana because of its huge potential to push the
financial inclusion agenda forward and alleviate poverty among the majority of our people.
We see microfinance companies (MFCs) as agents and catalysts for the realisation of the
dream of economic prosperity.
To demonstrate the commitment of the Bank to the effective supervision of licensed
MFCs, officers of the Bank have been stationed at our Regional Offices. This is meant to
enhance the monitoring and follow-up of licensed MFCs as well as for the surveillance and
early detection and resolution of unlicensed MFCs. Furthermore, a new system of reporting
called the Offsite Surveillance Electronic System (OOSES) has been introduced to
automate the off-site review and analysis of prudential returns submitted by MFCs.
Ladies and gentlemen, the Bank has additionally intensified its financial literacy campaign
to accurately inform and educate the public on the activities of unlicensed MFCs. Going
forward, the passing by Parliament of The Banks and Specialised Deposit-taking Institutions
Bill, and the Ghana Deposit Protection Bill, will be crucial to our efforts to ensure that
confidence is maintained in the banking sector. The two Bills will, among other things,
offer protection for the small depositor, and deal extensively with the problem of
unauthorised deposit taking business.
The Bank of Ghana will continue to provide a sound regulatory environment for the MFI
sector while expecting MFCs to engage in prudent activities aimed at protecting customer
depositors, maximizing profits and providing meaningful financial services to the rural poor
at affordable prices.
Mr Chairman, ladies and gentlemen, the Bank of Ghana would like to assure the community
of the Bank's social responsiveness and would make every effort to provide employment
opportunities to the local people.
Once again, I would like to appreciate everyone for the hard work, commitment and
contributions that led to this official inauguration ceremony today.
Thank you for your attention.