ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
GHANA ASSOCIATION OF BANKS (GAB) ANNUAL GENERAL MEETING KEYNOTE ADDRESS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA SEPTEMBER 19, 2024 1 of President, Ghana Association of Banks Governing Council Members of the Ghana Association of Banks Chief Executive Officer, Ghana Association of Banks Managing Directors of Banks Management and Staff of Banks Distinguished Invited Guests Members of the Press Ladies and Gentlemen 1.
It is a great pleasure to join you once again for the 41st Annual General Meeting and the launch of the 4th Edition of the GH Bankers’ V oice Magazine.
Ladies and Gentlemen, t he GAB and its leadership ha ve demonstrated resilience and enthusiasm in its advocacy role and deepened collaboration with the B ank of Ghana to address emerging issues and position the banking sector ahead of its peers within the sub- region.
Overview of supervisory and regulatory developments 3.
Distinguished guests, let us cast our minds back to the period between 2017 – 2019 when the Bank undertook the unpleasant but needful banking sector cleanup.
A process which resulted in the closure of some four hundred and twenty (420) institutions, including banks and non -bank financial institutions .
The objective was to reform the banking sector to enhance its resilience and viability, while stimulating confidence in the financial system.
After the cleanup, the B ank embarked on a comprehensive policy reform agenda to strengthen the regulatory environment and align the banking sector operations with international standards.
Also, to complement the reform efforts, the Bank rolled out several regulatory reforms in a bid to enhanc e the sector’s Governance framework as well as its resilience to shocks.
Distinguished Ladies and Gentlemen, since 2018 to date, the Bank has issued more than 15 directives, including the Corporate Governance Directive, Capital Requirement Directive, Fit and Proper Persons Directive , Risk Management Directive , Cyber and Information Security Directive, Revised Dud Cheque Notice, and recently Guidance Notes on Banks’ Recapitalization Plan.
In the development of these directives, the Bank has benefitted enormously from the technical assistance provided by our stakeholders including the IMF.
Ladies and Gentlemen, it is important to note that the GAB was integral in the regulatory reform process and supported the different stages of developing the Directives that were issued.
In most instances, the Directives were not issued without critical inputs and feedback from the GAB.
The deepened collaboration between the Bank and GAB further improved the quality and relevance of the Directives issued in supporting the overall objective of promoting the safety and soundness of banks.
Ladies and Gentlemen, it is worth noting that our banking sector has remained resilient with strong capital and liquidity buffers , despite the global shocks from COVID-19 and geopolitical tensions in the past few years.
Latest data from the sector indicates improved performance notwithstanding the impact of the Domestic Debt Exchange Programme (DDEP) on the balance sheet of banks.
In the first half of 2024, the banking sector performance pointed to continued recovery from the impact of the DDEP.
Total banking sector assets grew by 33.3 percent to Gh¢323.1 billion at end -June 2024, relative to 21.2 percent growth at end -June 2023.
Profitability, liquidity, and efficiency indicators also improved over the period.
The Capital Adequacy Ratio (CAR), adjusted for reliefs, remained unchanged at 14.3 percent, between June 2023 and June 2024.
Without reliefs, the CAR was reported at 10.6 percent in June 2024, higher than the 7.4 percent recorded in June 2023.
Despite improvements in the sector’s performance, elevated credit risks pose threats to the recovery process.
The industry’s NPL ratio was 24.1 percent in June 2024, up from 18.7 percent in June 2023.
The consistent rebound in profits, adherence to recapitalization plans, 3 of and enforcement of strict credit underwriting standards are expected to help ensure that banks remain on the path to full recovery and resilience.
This enhanced performance of the banking sector, amid the obvious challenges, were made possible in part through the unrelenting partnership of GAB with the Bank, especially during the difficult DDEP process.
It is my hope that this AGM offers a rare opportunity to reflect on the recent developments in the banking sector, strategize to consolidate the gains made, and aim to sustain confidence in the industry for economic growth.
Distinguished Ladies and Gentlemen, fraud prevention and detection remain at the heart of BOG’s efforts at maintaining financial integrity and stability of the banking system.
As you would notice from the latest 2023 Fraud Report published by the Bank of Ghana this week, while banks reported a total count of 969 fraud cases which shows a 17% drop from the count of 1,163 cases in 2022, there has been an increase in the monetary loss from fraud.
The total loss value to banks with respect to fraud cases record ed an increase of 21% in 2023 to Gh¢63 million compared to Gh¢52 million in 2022.
More worrying is the increase in the number of staff involved in fraud.
The number of staff involved in fraudulent activities in Banks and SDIs rose from 188 in 2022 to 274 in 2023, representing an increase of 46%.
It further emerged that out of the 274 ca ses of fraud recorded involving staff in 2023, 211 (77%) were involved in cash theft (cash suppression), as compared to 140 (66%) staff involved in 2022.
This means that while banks and SDIs are putting in place measures to detect and prevent fraud from outsiders, their own staff are increasingly perpetuating fraud.
The BOG is obviously concerned about this growing trend and mandates Banks and SDIs to strengthen their internal controls and enhance staff due diligence during recruitment, as well as reinforcing continuous in-house staff training on professional conduct.
Supervisory and Regulatory Outlook – now and Beyond 14.
Ladies and Gentlemen, at the 40th AGM last year, I mentioned that the Bank of Ghana remains committed to promoting a strong, stable , and viable banking industry to support 4 of the country’s growth agenda.
While several policy measures have been implemented to achieve this objective, a lot remains to be done to promote a more resilient banking industry.
In February 2021, t he Bank was admitted as a member of the Basel Consultative Group (BCG) in recognition of the continued efforts to enhance the enabling regulatory environment.
Ghana therefore became one of the four countries, including Tunisia, Mauritius, and Nigeria to obtain BCG membership at that time.
Over time, the Bank has actively participated and contributed significantly to BCG activities aimed at promoting supervisory cooperation and implementing supervisory standards by the Basel Committee on Banking Supervision (BCBS).
This achievement has further strengthened the Bank’s commitment to promote the safety and soundness of the banking sector through effective regulation and supervision.
In furtherance to this, the Bank continues to ensure the evolution of its regulatory reform roadmap to address: • the emerging risks in the financial system.
• inputs from new and revised policy papers by international standard setting bodies such as the Basel Committee on Banking Supervision (BCBS).
• concerns and suggestions raised by key stakeholders such as GAB; and • other external shocks to the Ghanaian financial system and economy.
Ladies and Gentlemen, this year, the Bank commenced a thematic review of banks’ corporate governance practices to assess the effectiveness of their governance framework.
The exercise is ongoing and aims at ensuring full compliance to regulatory requirements such as the Corporate Governance and Fit and Proper Persons directives.
Plans are underway to conduct a thematic review of the viability and sustainability of banks’ business models.
To further boost ESG initiatives, the Bank has published the Climate-Related Financial Risk and Outsourcing directives as exposure draft to solicit inputs and feedback from stakeholders, including the GAB .
These Exposure Drafts are currently being finalised , 5 of incorporating comments from the industry and will soon be published on the Bank’s website.
President, the Bank’s policy direction moving forward, includes the development and publication of the following policy papers which are at different stages of review and completion.
The development phases of these policy papers are on schedule and expected to be completed by end-December 2025.
They include the following: • Large Exposure Directive.
• Concentration Risk Directive.
• Liquidity Directive.
• Related Parties and Intra-Group Directive.
• Bancassurance Directive.
• Stress Test Guidance Notes.
• Interest Rate Risk in the Banking Book Directive.
• Prudential Treatment of Sovereign Exposures Directive, which is novel, and the • ICAAP and SREP Guidance.
President, I wish to restate that the Bank of Ghana will continue to rely on the partnership and invaluable service of the GAB and other stakeholders in the banking sector throughout the consultation and development stages of these all-important policy reform initiatives.
As regulators, we may have had some disagreements working together; however, the Association has overall been an effective and supportive stakeholder with the same goal as the central bank.
And that is, to promote safety and soundness of the banking sector and stability of the financial syst em in general.
A special appreciation therefore goes to the President, the Governing Council, the Chief Executive Officer and members of the Association for the invaluable service and cooperation with the regulator and o ther stakeholders in the banking sector.
6 of Conclusion 22.
Distinguished Guests, to conclude, the banking sector’s half year performance in 2024 showed strong growth in profits and liquidity , which indicates an improved performance over the preceding year.
If this trend persists, we expect banks to rebuild capital buffers quickly and remain resilient to give a further boost to the economy.
On this note, and on behalf of the Management and staff of the Bank and on my own behalf, let me congratulate the GAB on its 41st AGM and launch of the 4 th Edition of the Bankers Voice Magazine .
Thank you and May God bless us all.
BANK OF GHANA SPONSORED PROJECT Accra Metropolitan Assembly Commissioning of 3-Storey 18-Unit Classroom Block with Ancillary Facilities & 3-Unit Nursery Block for Independence Avenue Cluster of Schools Speech by Dr.
Ernest Addison Governor, Bank of Ghana Independence Avenue Cluster of Schools Campus, Accra September 18, 2024 Her Excellency, the First Lady of the Republic of Ghana , Mrs.
Rebecca Naa Okaikor Akufo-Addo, His Royal Majesty, Ga Mantse & President of the Ga Traditional Council, King Tackie Teiko Tsuru II, Niimei and Naamei, The Minister for Greater Accra Region, Hon.
Daniel Nii Kwartei Titus Glover, Former Speaker of the Parliament of Ghana , Rt Hon.
Aaron Mike Oquaye, Second Deputy Governor of the Bank of Ghana, Mrs.
Elsie Addo Awadzi, Board of Directors of Bank of Ghana, Accra Metropolitan Chief Executive, Hon.
Elizabeth K.T.
Sackey, Staff of the Accra Metropolitan Assembly (AMA), Heads of Department and Staff of Bank of Ghana, Officials from the Ghana Education Service, Distinguished Invited Guests, Students, Teachers, and Parents, Ladies and Gentlemen.
Opening 1.
It is a great pleasure to join you all this morning to commission this ultra-modern 3-Storey 18-Unit Classroom Block with Ancillary Facilities & 3-Unit Nursery Block for the Independence Avenue Cluster of Schools .
In recognition of the critical role adequate infrastructure plays in the delivery of effective teaching and learning and in the life of school pupils , this is indeed a significant milestone in our community.
This landmark achievement also represents a major step in supporting government’s continuous efforts to p rovide adequate infrastructure in the educational sector to enhance the quality of teaching and learning.
Background of the School 2.
Your Excellency, the Bank of Ghana is proud to be associated with the commissioning of this edifice for the Independence Avenue Cluster of Schools.
Founded in 1906 during the British colonial era, the Independence Avenue Basic Schools, was originally known as the Accra Government Girls’ School.
During the years 1940 -1944, my own mother and a couple of other Osu girls were privileged to have attended this school.
The only surviving member who is still alive is Mrs.
Barbara Oddoye, currently over 90 years old.
In her recent autobiography, this is what she wrote about the school.
This was a school where discipline was enforced but there was some sophistication and refinement at AGG, which turned girls into ladies who spoke fluent English and could hold their own in any social group.
AGGS staged plays and pantomimes which the public was invited to come and watch.
AGGS’ Domestic Science Department was designated to bake cakes and make other delicacies for the entertainment of the “great and good” of Accra who came to watch or bet on horses at the Horse Racing Competitions in Accra Race Course.
As a result, many girls learned cake-making and catering under the supervision of Miss Adeline Ofori-Atta (later Mrs.
Akuffo-Addo) and Miss Irene Quansah (later Mrs.
Kofi) both of blessed memory.
During the post-independence period between the late 1950s and 1970s, the school was renamed Dodowa-Road Girls’ Middle School and expanded its curriculum to include Ghanaian languages and culture and became a hub for women’s empowerment and community development, symbolizing a progressive shift in the education of young girls in Ghana.
Request for Support 5.
Although one of the oldest public primary schools in the Central Business District of Accra with a total population of 778 pupils, the school had been in a deplorable state for decades, posing imminent danger to staff and pupils and adversely affecting teaching and learning.
Your Excellency, on 30th September 2019, the Bank received a request for support from the Independence Avenue “2” Basic School, through its Headmistress Mrs.
Agatha Dzathor and the then Mayor of Accra, Hon.
Mohammed Adjei Sowah, for the construction of a 3 - Storey 18-Unit Classroom Block and 3-Unit Nursery Block with Ancillary Facilities for the Independence Avenue Cluster of Schools, Accra.
You will recall that this was a period when the Bank was declaring significant profits.
The Bank’s Board of Directors thought it fit to give back to the Community and granted approval for the project.
The decision was to fully demonstrate the Bank’s social responsibility to the people in its immediate locality, in accordance with the Bank’s CSR Policy initiatives.
Project Construction and Expected Gains 8.
We believe this School Project will go a long way to instil a sense of pride and hope in the community.
Today, we celebrate this important milestone in the annals of the Independence Avenue Cluster of Schools.
A celebration of hope, progress , and a bright future for our children in this locality and beyond.
This project was not only undertaken to respond to the concerns of the pupils and teachers but has also afforded the Ghana Education Service and the Accra Metropolitan Assembly, and the Bank of Ghana a unique opportunity to collaborate for the greater good of the City’s business and commercial district.
Conclusion 10.
Your Excellency, Distinguish Guests, as we commission and hand over this infrastructure, it is the Bank’s expectation that Management of the Independence Avenue Cluster of Schools will commit to a rigorous maintenance culture to enhance the lifespan of the facilities for the present and future generations.
To the pupils who will walk through these gates, this school is your oyster, where your curious minds will explore, question, and innovate to reach heights higher than your forebearers.
And, to the teachers, remember your dedication and nurturing of these young minds will contribute to making this school a place of excellence that will produce the needed human capacity for the nation’s workforce.
Let me finally express my appreciation to all who have made this project a success.
To the former Mayor of Accra, Hon.
Mohammed Adjei Sowah and the former headmistress Mrs.
Dzathor thank you for the vision.
To the current Mayor of Accra, Hon.
Elizabeth Sackey, thank you for taking over th is vision and diligently seeing this project through to the end.
To the AMA Project Team, GES Officials and Contractors – thank you for your unwavering support and commitment to this project.
On behalf of the Board of the Bank of Ghana, I wish to extend our heartfelt appreciation to all stakeholders for the effective collaboration.
Together, we are building a brighter future for our children, our community and our nation.
Thank you very much and God Bless us all.
GIRSAL’s 5th Anniversary Launch and Rubber Value Chain Conference Dr Ernest Addison Governor, Bank of Ghana Accra Marriott Hotel September 17, 2024 1 | P a g e The Hon.
Minister of Finance – Dr Mohammed Amin Adam Hon.
Minister for Food and Agriculture – Dr Bryan Acheampong The Chairman of Board of GIRSAL and Members of the Board The Chief Executive Officer – GIRSAL The CEO, Development Bank Ghana Members of the Press Distinguished Guests Ladies and Gentlemen 1.
Good morning Distinguished Guests.
Let me first extend my profound appreciation to the Board and Management of GIRSAL for the kind invitation to deliver brief remarks on GIRSAL’s impact and the future of agricultural financing in Ghana.
Five years ago, the Bank of Ghana conceptualised and operationalised the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending Project (GIRSAL) as an innovative strategy to drive agribusiness development in the economy .
Since then, GIRSAL has made giant strides in providing credit risk guarantees and related services to financial institutions to boost agricultural lending .
Today, we have gathered here to celebrate the 5th Anniversary of GIRSAL under the theme: Cultivating Growth – Five Years of Empowering Ghana’s Agriculture through Innovative Finance and Technical Support.
2 | P a g e Importance of Agriculture in Ghana 3.
Ladies and Gentlemen, a gricultural financing is a critical aspect of Ghana’s development strategy due to the important role agriculture plays in the economy, particularly, on employment and food security.
From a macroeconomic perspective, agriculture contributes about 24 percent of GDP and employs an estimated 40 percent of the workforce.
Developments within the agricultural sector is critical for the economy, given that the weight of the food items in the consumer basket which accounts for 43.7 percent , hence a major driver of headline inflation.
It is also instructive to note that, on average, food import accounts for nearly 10 percent of total imports, which translates to about US$1.4 billion in import value.
Ladies and Gentlemen, the agriculture sector also holds a huge potential to help boost the country’s foreign exchange reserves.
First, as an import substitution strategy , sufficient food production locally will reduce the food import bill to preserve hard - earned foreign exchange reserves.
Second, through the export promotion strategy, Ghana could become a major food exporter which will improve the sector’s foreign exchange earning capacity.
Clearly, promoti ng a resilient and thriving agricultural sector will be transformational with broader implications on the economy, including price stability.
3 | P a g e Impact of GIRSAL 5.
Having recognised the inherent economic potential of a strong agricultural sector and value chain, the Bank of Ghana was part of the team that established the “Ghana Incentive-based Risk-sharing System for Agricultural Lending” (GIRSAL), as a holistic and integrated system of instruments to de-risk the agricultural sector and incentivize banks to lend to the sector to help accelerate growth.
The primary objective of GIRSAL was to establish a credit guarantee scheme to leverage bank lending to agriculture as well as address the imbalance between the significant contribution of agriculture to GDP and the constrained security of bank credit to agriculture.
Since its inception, GIRSAL has made significant impact by leveraging various strategies and programmes to de -risk agricultural financing, stimulate d increased lending to the agricultural sector, and improved lending conditions around agricultural lending.
And this is a good time for us to commend the Board, Management and Staff for successfully operationalizing GIRSAL.
Let me briefly highlight a few of these achievements.
Over the past five years, GIRSAL has issued credit guarantees valued at over GH¢604.53 million to 17 financial institutions, covering up to 70 percent of credit default risks.
Under the credit guarantee scheme, GIRSAL has channelled GH¢1.18 billion worth of loans, at relatively lower interest rates to about 137 agribusinesses located in 72 districts across 15 regions.
4 | P a g e 8.
In its operations, GIRSAL recognized the untapped potential in the rubber sector and stepped in to facilitate the entry of indigenous processors.
In doing so, GIRSAL provided essential financing incentives to mitigate perceived risks thereby inducing local participation and growth in the sector.
Through this intervention, the rubber sector has created permanent employment, generating some GH¢3.5 million per year in income to rural households.
GIRSAL also empowered 451 local smallholder rubber farmers and service providers, contributing a total of GH¢30 million per annum in incomes to 12,616 individuals.
These interventions in the rubber sec tor generated US$8 million in export proceeds.
GIRSAL’s Technical and Advisory Services have also delivered training and capacity building programmes to mid -level staff, executives, and Board members of financial institutions.
The direct technical support includes loan application assessments, loan facility restructuring and monitoring, strengthening of internal systems for agricultural lending, and the management of agricultural portfolios.
These have been complemented by support from consultants and third-party organisations.
GIRSAL has also extended business advisory services to develop and manage projects for its clients.
The feedback on the Technical and Advisory Services has been positive and encouraging.
This has shown that GIRSAL has made significant impact in demystifying agricultural finance by financial institutions.
These achievements attest to the fact that 5 | P a g e GIRSAL holds a huge potential to transform agricultural financing, given the necessary support.
Challenges in Agricultural Financing 10.
Notwithstanding these achievements, the participants in the agricultural value chain continue to face challenges in accessing finance.
First, interest rates on loan to actors in agricultural value chain continue to be prohibitive due to the high perception of risks, combined with collateral requirements that are almost impossible to meet.
The sector is also beset with risks that are beyond the control of actors in the value chain requiring some form of insurance schemes which may be inaccessible in most cases.
These risks manifest in the form of climate variability, which makes weather - dependent crop producers inc reasingly vulnerable, a s well as market risks, which reflect fluctuations in crop prices and market demand, affecting the ability of the actors to service their credit.
On top of these risks, the low level of financial literacy affects the ability of actor s to manage finances effectively, impacting their ability to either access credit or repay loans.
Distinguished Guests, in the face of these challenges, significant innovation would be required to revolutionise the agricultural financing landscape to expand access beyond the traditional financing sources.
Financing models would have to be modified, expanded, and adapted to meet the peculiar needs of the sector.
This would mean fully activating and adapting the Digital Finance and Insurance Pillars of GIRSAL – 6 | P a g e which are two key strategic areas of focus underpinning the GIRSAL strategy.