LAUNCH OF ABSA BANK GHANA LIMITED
ADDRESS BY
DR. ERNEST ADDISON
GOVERNOR, BANK OF GHANA
FEBRUARY 10, 2020
Your Excellency, Dr Mahamudu Bawumia, Vice President of
the Republic of Ghana
Honourable Ministers of State
Members of the Diplomatic Corps
Representatives of the Board, Management of Absa Group,
and Absa Bank Ghana
CEOs and Representatives from the Banking Industry
Customers and Clients of Absa Bank Ghana
Distinguished Ladies and Gentlemen,
Good morning.
1. Today marks a significant change in the history of the banking
sector as Barclays Bank Ghana Limited, which opened its doors
to banking in Ghana some 100 years ago transitions to Absa
Bank Ghana Limited. Before going any further, let me extend a
special welcome to Mr. Aaron Daniel Mminele, CEO of Absa
Group to Ghana, and for gracing this occasion. At this stage,
permit me to take you down memory lane as we follow the tracks
of this over a century journey which has led us to this important
launch. You will realize that the journey of Barclays and now
Absa is intertwined with the history of Ghana-making it a
cornerstone of the banking industry.
2. In 1917, the Colonial Bank, which was founded by a Royal
Charter in 1836 to trade in the West Indies, was acquired by
Barclays as the nucleus for its colonial network - Barclays
(Dominion, Colonial and Overseas), and started operations in
Lagos, Nigeria. Subsequently, the then new Barclays DCO
acquired branches of the National Bank of South Africa and one
other bank (the Anglo Egyptian Bank in Lagos) to widen its
international operations. By the end of 1926, Barclays had
established nine branches in West Africa, including Barclays
Bank of Ghana.
3. Your Excellency, after several decades of operating in Africa, it
is interesting to note, but comes as no surprise, that after
Barclays Bank acquired the National Bank of South Africa to
establish itself in Africa, Barclays plc is passing the baton back
to Absa, a South African bank.
4. What we are witnessing today is a culmination of three years of
arduous planning and execution of a detailed transition plan that
was presented to the Bank of Ghana by Executives of Barclays.
As regulators, we have worked closely with Barclays Bank and
its officials to ensure that every aspect of the transition plan are
aligned with the central bank's overarching goal of financial
stability. On this note, let me congratulate all those who played
diverse roles in this historic changeover from Barclays to Absa
Bank, for the professionalism shown in carefully engaging
stakeholders, customers, and the general public during the
transition process.
5. Your Excellency, the history of banking in Ghana would be
incomplete if special mention is not made of the contribution of
Barclays to Ghana's banking system and economic development
more broadly. Although the brand Barclays has now been
phased out of Ghana's banking system, it has over the decades
left a significant footprint that includes a strong corporate
culture, strong corporate governance, the provision of quality
financial services, skilled manpower, and investments in
technology driving cutting-edge solutions to the ever-growing
complex needs of the industry.
6. Barclays has also influenced the industry with many innovations,
including being:
the first bank to be nationally networked and thereby giving
•
real time banking in all the branches across Ghana in 1998;
the first to introduce cash accepting (Deposit) ATMs in Ghana
•
in 2013; and
Today, February 10, 2020 is another landmark as now Absa,
•
becomes the first bank to introduce Vertical Debit & Credit
Cards to enhance the functionality of scheme cards in Ghana.
7. These achievements are remarkable and the Bank of Ghana, and
the general public, expect the changeover to Absa to carry along
the level of excellence, leadership, and professionalism that has
become synonymous with the 100-year Barclays heritage in
Ghana. This is what has endeared the general public to Barclays
and that is what will be expected from Absa. I believe that Absa
Bank Ghana will carry the same principles into the next 100
years, and the new footprints will become even more exciting if
the Ghanaian public have an opportunity to become
shareholders in Absa Bank Ghana in the near future.
8. Your Excellency, Absa's leadership in the African financial
markets landscape is not disputed at all. For example, Absa has
single-handedly supported the creation of an Africa-wide Absa
Africa Financial Markets Index. This index studies key
developments in financial markets of several countries in Africa
and recommends alternative solutions, which is helping to
deepen the financial markets in Africa including Ghana. Although
we had indicated our concerns on some of the matrices, the
Absa Africa Financial Markets Index remains an important tool
and I will encourage you to share your knowledge and insight,
as well as best practices across the banking sector.
9. As Absa Ghana aspires to become a forward-looking digitally-led
bank, the Bank of Ghana is counting on you to contribute to the
development of digital solutions that make banking more
convenient, while providing more avenues to make financial
services more accessible to the unbanked.
10. Your Excellency, we are launching Absa at a time when
Ghana's banking sector is stronger than ever. Banks are well-
capitalized to perform their financial intermediary roles in
support of the economy. I am also delighted to let you know that
Absa Bank Ghana exhibited strong performance even during the
critical time of transition. Indeed, Absa Bank Ghana, was one of
the first banks to meet the new minimal capital requirement
through internally-generated funds. Total Assets more than
doubled from GH¢5.3 billion at end-December 2016 to GH¢11.7
billion at end-December 2019, and the bank's Capital Adequacy
Ratio of 10.6 percent improved significantly to 16.5 percent.
Also, the bank's Non-Performing Loans ratio of 19.2 percent
improved to 6.6 percent over the review period, an indication of
sound credit administration practices.
11. Your Excellency, the performance indicators just enumerated,
is a broader reflection of the current state of the entire banking
sector and an attestation that the reforms undertaken by the
Bank of Ghana within the intervening period are beginning to
yield the desired results. The banking industry has built up a
much stronger balance sheet and recorded strong asset growth,
improved quality of loans and profitability during the year. All
the financial soundness indicators, measured in terms of
earnings, liquidity, and capital adequacy remained strong.
12. The banking sector's performance has been encouraging and
as regulators, we will continue to hold banks accountable. We
will ensure the continuous sanity of the sector, and consistently
apply the laws applicable to the sector. Your Excellency, one of
the key aspects of the reform agenda was the issuance of the
Corporate Governance and the Fit and Proper Persons Directives
for banks which banks are now complying with. In particular,
enforcement of the Corporate Governance Directive has led to
several board chairs and CEOs of banks ending their tenure,
while Board members who had served for prolonged periods
have been replaced.
13. In addition, results of a recent survey indicate full compliance
with requirements of the Corporate Governance Directive on the
size, structure, composition and qualification of bank Boards;
due diligence in the appointment of key management personnel;
and separation of the positions of CEOs and Board Chairs. A total
of 184 bank directors undertook the mandatory annual Directors'
corporate governance Certification training programme. Of this
number, over 50 percent have fully completed the programme,
while the rest who are at various certification stages will be
certified by the deadline of end-March 2020.
14. Let me reiterate that as regulators, we will continue to commit
our resources towards ensuring that financial institutions
improve their internal controls and risk management systems
since the safety and soundness of institutions pivots on these
principles. Also, we will continue to create an enabling regulatory
environment that encourages innovation in the industry, while
ensuring that we continually strengthen our supervisory and
enforcement capabilities to ensure sanity in the industry. That
way, we can ensure that Ghana's banking business is conducted
in a safe and sound manner and with integrity, thereby retaining
the trust and confidence depositors, and indeed the general
public, reposed in the industry.
15. Ladies and Gentlemen, let me once again congratulate Absa
Bank Ghana and the Absa Group for the successful transition. I
trust that we can count on your support as we move the banking
sector to new heights in support of Ghana's growth and
development agenda. Thank you.