ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
This policy measure was expected to free up additional resources of about GHS2 billion for banks and SDIs to lend to critical sectors of the economy;  Lowering the Capital Conservation Buffer for Banks by 1.5 percentage points to 11.5 percent and providing capital relief of about GHS1.1 billion for banks to boost lending to support the economy;  Changing provisioning requirements for the spectrum of loan categories from 10 to 5 percent and which translates to about GHS115.3 million in capital relief to banks;  Restraining banks from paying dividends for 2019 to preserve capital and liquidity; working with banks to further lower interest rate on credit to private sector by about 200 basis point;  Collaborating with commercial banks to create a GHS3 billion credit facility for key industries including pharmaceuticals, hospitality, services, and manufacturing sectors; and  Agreeing with banks to provide a 6 -month moratorium on principal payme nts for the worst-hit sectors – Airline and Hospitality Industries.
It is by providence that the financial sector cleanup was undertaken at the time that it took place as heading into the pandemic, Ghana had already turned the fortunes of the banking system around and restored confidence in the sector.
We had put into place a framework to strengthen banks ’ capital.
The overall capital adequacy ratio for banks had increased to 21.3 percent well above the regulatory requirement of 13 percent .
The Non-performing loans ratio had declined from 21.3 percent at the end of December 2017 to 15.7 percent .
Liquidity in the industry had improved and profitability was also on the uptrend.
Chairman, the supervision of banks has been strengthened with systems and structures to identify, assess , and proactively mitigate or manage vulnerabilities and threats to stability.
The Bank o f Ghana has addressed the growing complexities and interconnectedness among various segments of the financial sector especially among banks and SDIs and the potential systemic risks that could arise due to regulatory arbitrage and information asymmetry.
The financial sector crisis has cost the Ghanaian taxpayer GHS21 billion to restore depositors’ funds and recapitalise insolvent institutions.
The economic impact of the pandemic may result in higher non-performing loans and capital erosion of banks.
A recapitalisation of the SDIs will become necessary to improve their resilience and enhance the safety of depositors funds.
The lessons learnt are many.
The Bank of Ghana is putting greater focus on identifying the early warning signals and in itiating prompt corrective action.
The symptoms of weak banks are usually poor asset 8 quality, lack of profitability, loss of capital, excessive leverage, excessive risk exposure, poor conduct , and liquidity concerns.
These symptoms are often caused by inappropriate business models, poor governance, poor decision making by senior management , misalignment of internal incentive structures with external stakeholder interests, and poor supervision.
The Bank of Ghana has learnt its lessons.
We will continue with policy measures aimed at restoring confidence and preserve financial stability.
In the aftermath of the pandemic, we would have to follow a careful unwinding of countercyclical measures that we have implemented and allow the financial system to function without the regulatory forbearance that we have put into place.
Banks will have to b e vigilant and upgrade their capabilities , improve governance and risk culture , and we are optimistic that with this approach, we will build a robust, resilient and capable financial sector to support Ghana’s beyond Aid Agenda.
I am confident that the line-up of distinguished speakers for the two-day event will lead to very useful discussions to guide the stakeholders going forward particularly in these very challenging times and beyond.
1 CRISIS TO RECOVERY STRENGTHENING ECONOMIC INSTITUTIONS IN SUB-SAHARAN AFRICA DURING COVID-19 SPEAKING NOTES FOR IMF WEBINAR DR.
MAXWELL OPOKU-AFARI FIRST DEPUTY GOVERNOR, BANK OF GHANA JULY 22, 2020 2 Introduction 1.
The global economy is going through extraordinary times, requiring even more exceptional responses .
Policy response has been swift and decisive in many countries - first to secure lives , and, to reduce the social and economic burden from the pandemic especially on vulnerable segments of the population.
Massive fiscal support measures and strong supportive monetary policies are being implemented in most countries to deal with the crisis .
In sub - Saharan Africa (SSA), most countries are confronting the crisis at a time when they are confronted with limited or no fiscal space, a situation that has further amplified their vulnerability.
This has thus made external financial support ever more critical at this point.
The Fund and other multilateral institutions as well as some bilateral partners have responded with massive financial support – a commendable feat.
The pandemic is still evolving and for much of SSA the cases are surging with considerable uncertainty about the magnitude of the effect of the pandemic on in the regi on.
Safely navigating the rapidly changing dynamics associated with the pandemic for sustainable recovery requires maintaining a careful balance between the concerns about zero tolerance for losing life and high predisposition and tolerance for securing th e structural pillars and conditions necessary for supporting the living.
A laser-sharp focus on the core public health and related economic issues is important in this process.
Collaboration with the IMF 4.
The feat achieved have been made possible with partner international institutions and the critical role played by the IMF has been instrumental.
Capacity development with support from the IMF has played a critical role in strengthening our policy frameworks and this will have to be acknowledged.
For example, the two policy institutions of state (Fiscal and Monetary Agencies) have benefitted from technical support driven by AFRITAC WEST2.
Ghana is an intensive users of Fund CD and at the last check, Ghana has benefitted on average around 20 percent of CD delivered annually by the IMF.
This is very high when viewed against the fact that collectively as a group fragile states in the West African sub-region (Liberia, Sierra Leone, and The Gambia) account for around 45 percent of CD received.
3 Fiscal Policy Support 6.
The FUNDs Capacity Development support was instrumental in the formulation of the Ghana Revenue Authorities’ 3rd strategic plan which has helped stabilize revenues through a TADAT diagnostic, audit and data analysis and evaluating the integrity of the tax payers’ database.
The passage of the PFM Act in 2017 with support from the Funds Capacity Development support has greatly helped in creating an institutional framework to help deal with the COVID-19 response.
This has led to a functional reorganization of the entire budget process, strengthening cash management and establishing a framework for assessing SOE risks, including publishing a fiscal risk statement.
The setting up of COVID-19 National Trust Fund and structures put in place to make it operational in line with the law had its foundations in the PFM Act, an Act that was developed with FUND technical input and support.
Monetary Policy Support 10.
On the whole, monetary policy implementation has been bolstered by enhanced analytical and supervisory frameworks which have allowed the central Bank to take a long term view of policy options and have supported the decision making process.
They have helped created monetary space and have been instrumental in helping dampen the impact of the shock.
CD also played a key role in strengthen Ghana’s monetary and supervisory frameworks.
In the monetary policy arena, the main emphasis has been on strengthening monetary policy formulation/implementation, communications policy and devel oping a forecasting and policy analysis system (FPAS) to support monetary policy analysis including through peer-to-peer learning.
This process is still ongoing 12.
Banking supervision has also benefitted immensely.
Over the past three years such support has been directed towards , CD activities concentrated on implementing internationally accepted best practices, adopting a risk -based approach to banking supervision, and strengthening t he banking resolution framework to address vulnerabilities in the banking sector.
Ghana has gone through a process of financial sector reforms beginning in 2017.
This led to the closure of weaker institutions, resulting in a full sanitization of the entire 4 financial landscape and placing these institutions in a better stronger position to deal with economic vulnerabilities.
The Amended Bank of Ghana Act, with support from the Fund helped provide provisions avenues to allow the central bank trigger an asset purchase program to address difficult times like these.
14 The space created by all these reforms enabled the BOG to provide timely response to the pandemic .
The MPC, as a result, announced several measures to mitigate the impact of the pandemic shock, including lowering reserve and capital requirements, revised provisioning and classification rules for specific loan categories.
Capacity Development efforts have also helped in data dissemination and timely release of information has helped with investor perception on credibility of policies.
These have all been achieved with Technical support guidance from the IMF.
Looking Ahead Towards Further Collaboration 16.
The pandemic effects are still evolving and there is a high degree of uncertainty in the global economy and it remains still unclear when the crisis will end and when we can begin to think meaningfully of recovery.
The road to recovery will be a painful process and we need to think carefully through the following issues:  Strengthening economic institutions to provide the necessary technical support to economic policy making.
This can be achieved through provision of appropriate technical support.
Effective collaborat ion with Fund and Authorities to strengthen on ongoing capacity building programmes for member countries will be essential.
In particular, designing targeted online programmes to deal with country -specific challenges in the current environment will be impo rtant to support the policy process in these challenging times.
 By the end of the crisis, all fiscal space would have been depleted and debt levels will rise .
Redoubling efforts toward revenue mobilization will be critical to generate the appropriate prim ary balances to bring down debt levels to sustainable levels.
Revenue generation will be also necessary to 5 create fiscal space, to address anticipated renewed demand for the provision of public services to help support faster growth.
 The crisis has also shed light on the new for more reforms in critical sectors of governments operations and further strengthening PFM frameworks in accounting for the effectiveness in the delivery of COVID -related expenditures.
We understand that the Fund, sometime this week (July 29- 31) will be organizing a virtual workshop on how to record covid-19 related policy intervention in Fiscal Statistics.
These are all steps in the right direction.
 In addition to financial support, a crucial element in this direc tion is strengthening economic institutions to provide the necessary technical support to economic policy making.
In the current rapidly changing environment and uncertainty, it is important that such policies remain well focussed and one way of achieving this rests on the provision of appropriate technical support.
This can be achieved if the Fund and country authorities effectively collaborate and strengthen the ongoing capacity building programmes for member countries.
In particular, designing targeted online programmes to deal with country-specific challenges in the current environment will be important to support the policy process in these challenging times.
 It is also important to strengthen and implement reforms aimed at dismantling bottlenecks in domestic revenue mobilization and administration while undertaking legal reforms that ensure property rights protection.
Bureaucratic constraints in the delivery of government services should as much as possible be removed to allow for maximum benefits from government services.
These processes will no doubt be critical going forward for a sustainable recovery.
 Decisive and clear assessment of each country’s situation is even more critical at this point to support policymakers.
The Fund definitely has a huge role to play in supporting member countries in this regard.
Thus, supportive human capacity building focused on harnessing local and international expertise in the provision of strong policy advice and overall strengthening economic institutions will be important to support sustainable recovery process.
LAUNCH OF GHQR AND NATIONAL INTERBANK FUNDS TRANSFER (PROXY PAY) REMARKS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA MARCH 25, 2020 BANK OF GHANA AUDITORIUM 1 The Vice President of the Republic of Ghana, Dr .
Alhaji Mahamadu Bawumia, The Chief Executive Officer, Mr.
Archie Hesse, Heads of banks and non-bank financial institutions, Invited Guests, Ladies and Gentlemen 1.
Good morning and welcome to the launch of Ghana’s first universal QR code payment solution.
This event is yet another landmark for electronic payment systems architecture, in furtherance of Ghana’s financial digitisation agenda; and this launch could not have come at a better time than today as we encourage the use of alternative forms of payment in the light of the Covid-19 pandemic.
Our goal to ensure an effective payment system has seen several major initiatives along the way.
The formation of GhIPSS in 2007 ensured a more efficient approach to interbank payments and settlement, the branchless banking guidelines in 2008 introduced the concept of branchless banking in Ghana which eventually led to partnerships between banks and Telcos to deliver mobile money with MTN launching the first service in 2009.
The regularization of mobile money operations through the electronic money issuer guidelines in 2015 which eventually put Ghana on the map as one of the fastest growing mobile money markets and brought basic financial service to millions of Ghanaians.
We successfully implemented the Mobile Money interoperability which is giving the ability to conveniently send money to bank accounts and other 2 mobile money wallets.
The payment systems and services act 2019, was introduced to, among other things, re cognise & supervise Fintechs who are a key catalyst for innovation in the industry.
We still have more to do to ensure that more individuals are paying for goods and services on a daily basis using digital means.
Therefore, launching of a Unified QR code today, which is expected to bring a simplified user experience for customers to make payments to any merchant and for small merchants particularly to receive payment from any one.
Your Excellency, there is no doubt that Ghana is making giant strides in modernising its payment systems architecture.
In the last three years, we have increased electronic payment access points such as point of sales (POS) terminals and usa ge of electronic money .
In addition, the m obile money agent network has expanded almost fourfold in 2019 compared to 2015.
Similarly, new business models are emerging, with increased Fintechs participation in payments or payment related services .
Transactions via the electronic wallet ecosystem has remained vibrant and contributed significantly to the rapid growth in mobile transactions.
For instance, the number of mobile money transactions increased seven-fold from about 266 million in 2015 to over 2 billion in 2019.
Despite the rapid growth, indications are that cash still remains dominant.
The deployment of POS terminals has not been universally adopted to drive electronic payments due to high set up and operational costs.
Against this background, the focus of the Bank of Ghana has been to e xpand 3 merchant payment options with a view to providing market solutions that are “infrastructure light” but transformational a nd speed up electronic payment acceptance.
One of such cost-effective market solutions is the Universal QR code and Proxy Pay, which are interoperable and can leverage on the high mobile phone penetration in Ghana .
More especially, it is more cost-effective alternative to traditional POS terminals.
The QR code is easy to use and versatile and will provide a solution to the fragmented e -payment landscape as it is compatible to the available e-payment products such as ATM machines, credit and debit cards, online banking and mobile banking.
In addition, it minimizes termination of e -payments in cash.
The introduction of the QR Code is an i ntegral part of the Payment Systems Strategic Plan (2019 –2024) captured under the Financial Technologies Strategy Pillar.
Therefore, today’s event demonstrates Bank of Ghana’s commitment to the realization of this essential pillar of the Payment Systems Strategy.
Broadly, the universal QR code and the Proxy Pay solutions have the potential to become game changers by supporting merchants to accept payments from customers of different financial institutions and non -bank entities.
These solutions would also speed up digitization of payments to distributors, wholesalers , suppliers, as well as encourage users and merchants to accept and us e electronic payments.
This will provide a further boost to the financial inclusiveness through digitisation agenda.
The key component of inclusivity and adoption of electronic payment options is public confidence.
This requires a well-coordinated approach by all stakeholders in the payment eco -system to create the needed awareness of such innovative electronic payment p roducts through intensified public education campaigns.
Among others, such campaigns should focus on the convenience of going ‘cashlite’ and the ease with which such electronic payments can support daily transactions such as transport fares, purchases from the traditional markets, restaurants, hospitals, schools, and so on.
In building confidence in the electronic payment products, financial and non-financial institutions should also continue to tighten and enhance security features , in particular cyber security.
This would require strengthening the effectiveness and robustness of the preventive and fraud detection systems using the latest technology such as machine learning and artificial intelligence.
Beyond that, offering liability protection programs and the availability of dedicated platforms to resolve consumer complaints timeously would also provide assurance and boost consumer confidence in the electronic payment products.
In the spirit of collaboration to drive such innovation, let me take this opportunity to encourage banks to continue working with existing Payment Service Providers, while these PSPs go through the new licensing process.
Banks can also integrate new PSPs in order to develop products and proceed to Bank of Ghana for approval before launching commercially.
To conclude, let me state that the high penetration of electronic wallets and mobile phones ha s positioned Ghana to leverage on the universal QR code and Proxy Pay to advance our quest for a cash-lite economy as we improve financial inclusion.
In this regard, I would like to congratulate GHIPSS and other stakeholders who have worked diligently towards today’s launch of the National QR Code Payment Service and the Proxy Pay.
The Role of Regulators in Advancing Financial Inclusion and Innovations Speaking Notes Dr.
Ernest K. Y. Addison Governor, Bank of Ghana Kempinski Hotel Gold Coast Accra March 10-11, 2020 BANK OF GHANA ES T.
1 9 57 1 BANK OF GHANA ES T.
1 9 57 All protocol observed.
Introduction Thank you very much for the invitation to this maiden MT4D event.
Let me also use this opportunity to congratulate the Ghana Chamber of Telecommunications and its partners for the foresight in organizing this conference.
Ladies and Gentlemen, the importance of financial inclusion for growth and development cannot be overemphasized.
It is generally accepted that financial inclusion boosts economic growth and poverty reduction through channels such as savings mobilization and resource allocation.
M ost importantly to central bankers, financial inclusion supports our efforts to maintain price stability.
This is because, advancing financial inclusion strengthens the monetary policy transmission channel.
Simply put, when a greater share of the economy is formalized, the interest rate channel becomes more effective to achieve the desired objective of price stability.
In recent times, the financial inclusive agenda has received a major boost from digital transformation which through cost savings, wider network, and efficiency gains.
The current digital transformation however has created the phenomena where traditional institutions such as the formal banking sector have reinvented themselves to respond to the emer gence of agile and equally responsive competitors , such as the financial technology companies.
Currently both the traditional and the new players in the 2 BANK OF GHANA ES T.
1 9 57 financial sector have increased the ir technological platforms to make financial products and services more flexible, competitive and accessible , and by so doing promoting the financial inclusive agenda.
Legal and Regulatory Reforms The stability of any financial sector is broadly anchored on strong legal and regulatory frameworks.
With the recent rise in technological advancements, updates to the financial sector regulatory frameworks have even become more urgent.
Over the years, Bank of Ghana, as a regulator, has undertaken several legal and regulatory reforms to cover emerging digitization of financial services .
These reforms hold great potential for leveraging digital finance to scale up financial services, enhance competition, address consumer demand , and engender greater financial inclusion.
 Payment Systems Act 2003 (Act 662) The Ghanaian journey on leveraging technology for increased financial inclusion was given a major boost with the passage of the repealed Payment Systems Act 2003 ( Act 662).
The key achievements under this Act were: o Establishment of GhIPSS, RTGS, and ACH o GHIPSS Instant Pay, and the o Provision of the needed framework for regulating the payment ecosystem.
3 BANK OF GHANA ES T.
1 9 57  Branchless Banking Guidelines 2008 To encourage banks open agent points to mobilize low value deposits, the Bank of Ghana passed the Branchless Banking Guidelines in 2008.
Not much was achieved under this Guidelines on account of the following: o Limited participation of banks in the agent network concept o Liquidity management challenges o Issues on roles and responsibilities of banks and mobile money operators.
 Electronic Money Issuers and Agents Guidelines 2015 In 2015, t he Bank passed the Electronic Money Issuers and Agents Guidelines with the broad objective of widening the scope of financial services delivery.
The key initiatives under these Guidelines were to: o Grant p ermission to the Mobile Network Operators to set up subsidiaries to be licensed as Dedicated Electronic Money Issuers o Ensure payment of interest on float balances and distribution of the interest to e-money account holders o Promote t iered K now-Your-Customer accounts (minimum, medium and enhanced) to foster financial inclusion o Ensure the p rinciples of consumer protection in the digital finance space, and o Encourage partnerships between Mobile Money Operators partnership and banks, to offer savings, credit and investment products.
4 BANK OF GHANA ES T.
1 9 57 To all intents and purposes, t he strong regulatory support for the mobile money enterprise in Ghana has proved to be highly successful in protecting the integrity of financial transactions , and at the same time foster ed financial inclusion.
 Payment System and Services Act 2019 (Act 987) The Bank of Ghana moved a step further to consolidate all the guidelines on payment systems to provide a comprehensive legal framework for electronic money issuance and ensure that non-banks, including Fintechs, are licensed to provide digital financial services .