ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
Before I proceed any further, let me say that we are privileged to have H.E.
President Nana Addo Dankwa Akufo-Addo to grace the occasion.
Your Excellency, we very much appreciate taking time off your busy schedule to come.
We also recognize the presence of H.E Vice President Alhaji Dr.
Mahamudu Bawumia, The Speaker of Parliament, Rt.
Honorable Prof.
Aaron Mike Ocquaye, and the Chief Justice, Her Ladyship Sophia Akuffo.
I would also like to take this opportunity to recognize Governors from sister institutions on this continent: Governors from BCEAO, Kenya, Lesotho, Mauritius, Guinea, Mozambique, and Deputy Governors from South Africa, Botswana, Nigeria, Sierra Leone, and Zambia.
And finally, I also acknowledge the presence of former Governors and Deputy Governors, who in various ways provided invaluable services to the Bank of Ghana and shaped this unique course of history.
Your Excellency, the chosen theme for this anniversary celebrations, “ Celebrating 60 Years of Central Banking: Achievements, Challenges & Prospects”, creates a platform for sober reflection on our past and what was achieved, and where we are heading as a central bank.
We have a series of planned events which chronicles the evolution of the Bank of Ghana, including a high-level symposium on emerging issues that directly affect the Bank’s operations.
We have also put in place an exhibition of old currencies, documentation and pictures to capture the Bank’s nostalgic memories.
Your Excellency, in line with the theme for the Anniversary, we highlight some achievements as well as challenges faced in the execution of our mandate of price stability.
The historical roles of central banks in most developing countries, including Ghana, have been shaped by development strategies adopted over the period.
Bank of Ghana is no exception and the Bank’s policies and activities have been shaped by changing political and economic conditions over the years.
In the foundational years, the Bank of Ghana Ordinance (No.
34) of 1957 clearly defined the role of the Bank to suit the prevailing circumstances which characterized optimism and aspirations associated with the country’s attainment of independence.
Consequently, the Bank of Ghana pursued proactive policies to foster the credit system, creating financial institutions as growth-promoting vehicles, while exercising the fundamental responsibilities of currency management and acting as the Government’s banker.
Since then, the Bank has epitomized and embraced new thinking on monetary policy formulation, driven by those privileged to serve the Bank at the highest level—some of whom are with us here now.
Ladies and Gentlemen, it has been sixty years and the Bank is now operating in a different statutory and macroeconomic context.
To respond to changing domestic conditions and developments in central banking and monetary policy globally, the Bank of Ghana Act 2002, Act 612, which was passed to bestow operational independence on the central bank, was amended in 2016 to further reinforce and re-focus its policies and mandate on price and financial stability.
These two pieces of legislation marked a paradigm shift in the Bank’s operations and would continue to define the role of the Bank of Ghana going forward.
On monetary policy formulation and implementation, the Bank officially adopted inflation targeting framework a decade ago, with the Monetary Policy Rate as the main policy tool.
Over the past decade, the framework has helped lower inflation volatility.
Prior to the implementation of the framework, inflation was highly volatile and hovered above 40 percent, but has since declined significantly and edging closer to the medium-term target of 8±2 percent.
The IT framework introduced some clarity and transparency into the monetary policy formulation and helped anchor inflation expectations.
This aside, Ghana is a small open economy and hence vulnerable to adverse developments in the global economy, especially in the international commodity markets.
These vulnerabilities transmit to the domestic economy through the trade and financial sectors, posing major challenges to the macroeconomic fundamentals.
For instance, the past decade has witnessed significant turmoil in the global economy with rippling effects on international commodity and financial markets.
Because of the openness of the Ghanaian economy, such global shocks ultimately pose challenges to macroeconomic stability, which is a necessary condition for growth.
Such events present immense challenges to monetary policy formulation and the Bank’s mandate of price stability.
Ladies and Gentlemen, the financial sector has also witnessed significant transformation over the years.
From a few government-owned banks, the banking sector is now characterized by privately-owned banks with diverse countries of origin.
The sector continues to record asset growth and remains liquid, although some financial soundness indicators have weakened in recent times, raising concerns for financial stability.
For instance, the prevalence of high non-performing loans reduces liquidity which impacts negatively on profitability, and broadly obstructs transmission mechanism of monetary policy.
Chairman, as part of our mandate to maintain financial stability, the Bank has embarked on a process to resolve some of the prevailing issues which threatens stability of the banking sector.
Just this week, the Bank of Ghana revoked the licenses of 2 banks and approved a purchase and assumption agreement that allowed GCB Bank Ltd to take over the affected banks’ selected assets and deposits.
This, together with other prudential and supervisory measures introduced by the Bank of Ghana, is geared toward safeguarding the stability of the financial system and creating a healthy financial sector capable of supporting the transformational agenda of the Government.
Chairman, a decade ago, the Bank launched a comprehensive programme to revamp the payment and settlement systems which is deemed critical for the transmission of monetary policy.
The Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) was then established to implement and manage the payment system infrastructures for banks and non-bank financial institutions in Ghana.
Currently, GhIPSS manages the National Switch and Biometric Smart Card Payment System (E-zwich), the Cheque Codeline Clearing (CCC) and Automated Clearing House (GACH) systems.
Today, our payment system infrastructure is among the best in the sub-region and we are gearing up to take it to the next level of interoperability which should unleash more innovative products and services and promote financial inclusion in the country.
Ladies and Gentlemen, we can go on enumerating the achievements, but I would also like us to refocus our energies on the future of the Bank of Ghana.
Chairman, the uncertainty in the global economy suggests that the Bank’s mandate of price and financial stability should be anchored on new strategies to strengthen monetary policy formulation to ensure macro stability and a healthy financial system.
The combination of which would unleash the full potential of the private sector to boost economic growth.
As per the amended Bank of Ghana Act, 2016 (Act 918), the operational independence is still guaranteed and the central bank will continue to employ all tools available to achieve the mandate of price stability.
In our quest to maintain sanity in the financial industry, the Bank of Ghana will continue to strengthen the licensing requirements, regulatory and supervisory frameworks of banks and non-bank financial institutions.
Together with other relevant stakeholders, we will work to build a stronger industry in a business-friendly environment by ensuring that banks have adequate capital to match their risk appetite.
The Bank is fully aware of its overall institutional responsibility of developing an integrated financial system that can provide diversified range of products and services to support a dynamic growing economy.
As we mark this 60 th Anniversary, therefore, the Bank commits to pursue this objective with professionalism and integrity, as we lay another foundation for the next phase of central banking in Ghana.
Chairman, I should say that I consider it a privilege and an honour to be part of this important milestone of the nation’s central bank.
And I welcome you all to take active part in the celebrations.
CLOSING ADDRESS DELIVERED BY MR.
MILLISON NARH FIRST DEPUTY GOVERNOR, BANK OF GHANA AT 2017 CONTINENTAL SEMINAR OF THE ASSOCIATION OF AFRICAN CENTRAL BANKS (AACB) AT MOVENICK AMBASSADOR HOTEL ON MAY 05, The Executive Secretary, AACB, Colleague Central Bankers, Distinguished Guests, Ladies and Gentlemen, Introduction 1.
I am delighted to be part of the 2017 continental seminar.
I am reliably informed that the deliberations were very fruitful.
Effective communication has now emerged as one of the most crucial and latest addition to the menu of monetary and financial stability policy tools at the disposal of central banks in our modern era.
Within the framework of inflation targeting and market based, prudential regulation of financial institutions, the need to have an effective, well- coordinated and targeted communication strategy cannot be ignored by any central bank that wants to succeed in delivering the twin mandate of price and financial stability.
As was mentioned, the importance of having a carefully planned communication strategy is well captured in the statement by a Deputy Governor of the Federal Reserve Bank of New Zealand, that ‘central bank’s pronouncements have economic and social impact.’
To this end my colleague, the Second Deputy Governor of Bank of Ghana, challenged you to find answers to three important questions at this seminar: a. How should central banks manage communication in times of financial crisis?
b. How does effective communication enhance central bank credibility and effectiveness of monetary policy and for maintaining stability in the financial sector?
and c. What lessons should we learn from cross-country experiences in central bank communications strategies?
I hope the various expert presentations and the plenary sessions have helped you enhance your knowledge and understanding of these and other pertinent issues bordering on communication in the central bank.
Some of the key points gathered at this seminar include but not limited to the following: a. That effective central bank communication requires a consciously designed strategy in line core mandates, the adoption of the most suited medium, and with specific target audience in mind; b. There is also the need to have specific strategies for monetary policy and financial stability.
But the effectiveness of adopted strategies should be assessed regularly through surveys and feedback in order to adjust to the changing circumstances; c. Finally, the issue of consistency in message, proper coordination and adequate funding of communication activities must not be underestimated.
Colleague Governors and I would surely be expecting to receive the communique from this seminar to help us consider the needed interventions aimed at improving the use of communication as a tool, not only for managing crisis but also to prevent them.
On behalf of the Governor of the Bank of Ghana, I wish to thank the AACB for choosing Ghana to host this seminar.
I believe through this seminar, our international delegates have had the opportunity to taste Ghanaian culture and hospitality.
Yet, I would still encourage you to stay longer, if possible, or return to Ghana on your next vacation to explore more of the marvellous sights and sounds unique to our country, Ghana.
Finally, may you carry our warm felicitation to your Governors and colleagues in your central banks.
I also expect you to share the experiences, the gains and the take-away points from this seminar with my fellow Governors so that we can expand the coverage of the intended impact beyond this year’s seminar.
I wish you all safe flight back home.
ADDRESS DELIVERED AT 10TH ANNIVERSARY BALL OF FIDELITY BANK GHANA LIMITED BY DR JOHNSON P. ASIAMA SECOND DEPUTY GOVERNOR, BANK OF GHANA AT AT THE MOVENICK AMBASSADOR HOTEL ON FRIDAY, APRIL 28, Mr.
President of the Republic of Ghana, Board Chairman and Group CEO of Fidelity Bank Ghana Limited, Captains of the Banking Industry, Management and Staff of the Bank, Distinguished Guests, Ladies and Gentlemen Introduction 1.
It is a pleasure for me to join you this evening as w e mark the 10th anniversary of Fidelity Bank Ghana Limited (FBL).
Indeed, ten years is a major milestone for an institution as it is for an individual.
The celebration is not so much a festivity but an opportunity to pause and assess the journey so far.
It is a moment to look forward and to devise strategies to overcome particularly some of the emerging challenges facing in this technologically dynamic financial world.
In my address this evening, I will briefly recount th e progress that Fidelity Bank Ltd has made over the years, and then I will discuss a few regulatory issues that are under discussion.
These would include some brief remarks on risk management in the banking industry, developments in the payments system landscape, and lastly the emerging risks with electronic fraud.
Ladies and gentlemen, I have been with the Central Ba nk long enough to acknowledge the significant impression FBL has left on the Ghanaian banking landscape and the niche it is charting particularly in the areas of growth, transformation, innovation and corporate social responsibility.
The Fidelity brand has evolved and expanded overtime; thanks to all the gallant men and women who have held the fort, including its loyal customers from inception till now.
On the occasion of this special 10th anniversary therefore; permit me to add my v oice in congratulating the management and staff, for your efforts in creating such a strong and unique identity for Fidelity Bank.
Progress made by Fidelity Bank Ltd 6.
Since 2006 when FBL joined the banking fraternity aft er evolving from the former Fidelity Discount House, Fidelity Bank Limited has grown both organically and inorganically in size, expanding its branch network, staff, and service.
Indeed, the performance of Fidelity Bank has been satisfactory with total assets steadily increasing at end-March 2017 to GH¢4.10 billion, up by 4.71% from the corresponding period last year.
The bank has grown its deposits base to GH¢2.58 billion and has extended credit to the tune of about GH¢1.47 billion.
According to our records, Fidelity Bank Limited has i nvested in more than 115 ATMs and operates 75 branch networks with presence in 8 out of the 10 regions of the country.
Today, Fidelity Bank can boast of establishing two subsidiaries, the Fidelity Asia Bank Limited, its offshore banking hub and the Fidelity Securities Limited, the investment banking arm.
One of the strongest points I have taken notice of du ring your ten years of existence as a bank relates to the smooth acquisition of ProCredit Savings and Loans Company Limited in October 2014 and the effective manner you have exploited the prospects of synergy to your advantage.
The transition was effectively done, with less tension and limited staff layoffs, and I congratulate the board and management for that.
Product design and service development is yet another area I see Fidelity Bank’s competitiveness.
FBL effortlessly run promotions and models reaching out to its customers and hitherto the un-bankable populace.
The financial inclusion models such as agency banking, mobile and digital banking, microfinance and strategic partnership are but a few examples of such developments which have contributed to building customer loyalty and expanding banking business in the country.
Risk Management in the Banking Industry 10.
As regulators, we welcome such dynamism in the indust ry and will continue to play our supervisory roles in a way that facilitates financial sector development and at the same time maintaining the integrity of the financial system.
As you are aware, the Bank of Ghana has recently concluded the Asset Quality Review (AQR) exercise, and prescribed remedial measures both general and specific to the risk exposure of each bank to help consolidate the existing resilience of the industry and restore the affected banks.
We have subsequently issued Supervisory Letters to th is effect, (I believe Fidelity Bank has received theirs) with strict timelines for compliance by all.
The AQR exercise highlighted impairment in banks’ loan books, capital deficiencies, credit concentration in the energy sector and some latent vulnerability in the banking industry.
Banks are thus required to reclassify all downgraded facilities and book the appropriate provisions.
For banks which suffered capital erosion leading to breaches in solvency and single obligor limits, they are required to furnish the Bank of Ghana with an acceptable capital plan that would restore them to the prescribed capital adequacy benchmark and/or plans to wean them off exposure limit breaches.
The Bank of Ghana is also working to enhance the cred it infrastructure further.
The Committee has completed its work, and hence a draft notice would be issued soon for implementation.
Another key effort is also underway to increase the e ffectiveness of the Collateral Registry and the Credit Reference Bureaux.
In this direction, the Bank of Ghana is developing a central Data Hub for use by data providers to ease their data submission to credit bureaus.
Also, proposed amendments to the Borrowers and Lenders Act, Act 773 have been drafted with the aim of strengthening the Secured Transaction Regime in the creation, perfection, priority and enforcement of security interests on both movable and immovable property.
It is our hope that the availability of information o n the credit history of borrowers will have a positive impact on the pricing of credit products across the financial sector.
These developments will further deepen financial inclusion in the country.
Ladies and gentlemen, while working to promote an acce lerated development of the financial sector, we must remain cognizant of the emerging risks.
We want to emphasize that strengthening financial service operations with risk management in the financial sector is a shared responsibility.
We as regulators are encouraging banks and other fina ncial institutions put in place measures that will ensure a sound and safe banking sector where risks are commensurate with the rewards.
In particular the full implementation of the Basel II and III framework which seeks to minimize systemic risk in the financial sector.
Also, the recent passage of the Banks and Specialised Deposit- Taking Institutions Act, 2016 (Act 930) and the Ghana Deposit Protection Act, 2016 (Act 931) in particular, were to provide a suitable legal framework for banking supervision, a framework that addresses issues of emerging risks and vulnerabilities in the banking system, while nurturing innovation and financial inclusion, powers of supervision and control, receivership and liquidation, among others.
Payment Systems Developments 17.
Ladies and gentlemen, as you are aware, information a nd communication technology (ICT) is transforming the financial services industry with rapidity.
ICT is challenging the traditional banking model by providing alternative channels for banking and payments.
In response to the changing banking and payment lands cape, we initiated a process to review the Electronic Money Issuers and Agents’ Guidelines (2015) and the Payment Systems Act 2003 (Act 662) with the view to consolidating it into one piece of legislation called, Payment Systems and Services Bill, 2017.
We have consulted widely with stakeholders in draftin g the bill, and the draft is currently with the Ministry of Finance, ready to be forwarded to Cabinet.
Clearly, the improvement in regulatory environment ha s drawn interest of banks and non-bank institutions in the digital financial space.
We are seeing increasing collaboration between banks and non-bank institutions such as telcos and financial technology firms for financial service delivery, hence there is no doubt that technology is promoting innovative financial products and a more inclusive financial system in Ghana.
We are also working with the banking industry to migra te all payment cards from magnetic stripe standard to Europay, MasterCard and Visa (EMV) chip and PIN standard this year to enhance security and reduce fraud in the industry.
Clearly, the use of electronic payments will reduce p ayroll fraud, improve government revenue collection efforts and enhance the monetary policy transmission mechanism.
Notwithstanding the progress made in payments systems development over the last couple of years, there remains a lot more to be done.
It is against this background that stakeholders of the payment systems are being brought together under the Payment Systems Council to guide the orderly development of the payment system.
Electronic Fraud 24.
Generally, technology-driven payment products are pro ne to attacks by cyber criminals.
Cyber-attacks on financial service providers are becoming increasingly sophisticated and the recent attack on the Central Bank of Bangladesh is signal enough for us to take precautionary measures to avert attacks on our financial infrastructure by hackers.
As a result, I urge financial institutions to work with financial technology firms to deploy security systems with threat intelligence capabilities to assist in preventing cyber threats to financial infrastructures.
We therefore enjoin all financial institutions and pa yment systems operators to obtain international security certifications such as the ISO 27001 and the PCI DSS.
These requirements are necessary to promote the integrity of the financial and payment systems.
Conclusion 26.
It is always a good thing to mark accomplishments.
Ce lebrations of this nature afford us all an excellent opportunity for self introspection, reflecting on our achievements and challenges, and preparing for the opportunities that lie ahead.
I am confident that Fidelity Bank Limited would continue to manage its journey well as it strives forward, with the collective efforts of its stakeholders.
I congratulate them for this significant milestone, a nd I wish them every success for the future and a memorable night for tonight.
1 REMARKS BY DR ABDUL-NASHIRU ISSAHAKU, GOVERNOR, BANK OF GHANA, ON DECEMBER 28, 2016 AT A PRESS SOIREE HELD AT THE BANK TO COMMEMORATE THE END OF THE YEAR Good afternoon.
On behalf of the Board of Directors and Management, l would like to express our profound gratitude to you members of the Press for the collaboration we have had during the year.
As effective communication is necessary to ensure that the monetary policy transmission is not unduly impaired, we are very grateful for your support.
As you are a ware, the inflation targeting framework involves expectation management to ensure that inflation is anchored.
Hence, the effectiveness of monetary policy has become more and more dependent on steering expectations of future interest rate policy.
And no oth er policy tool plays this role better than effectively communicating the policy decision and the considerable efforts made in arriving at that decision.
It is for this reason that we try to be clear and open about our actions and operations.
On the policy front, our efforts at sustaining macroeconomic stability continue to yield dividends.
Thanks to continued fiscal restraint and the tight monetary policy stance, we have been largely able to anchor 2 inflation expectations while the economy is becoming more resilient to external shocks.
As you are aware, the Ghana Cedi has remained broadly stable during the year and we are optimistic that the cumulative depreciation for the year will remain in the single digits.
This stability in the Ghana Cedi has reduced the pass-through to domestic inflation, although inflation is still above target.
We therefore need to sustain the macroeconomic stability to anchor expectations and to build shock absorbers in the face of continued volatility in the global economic and financial environments.
Let me mention the establishment of our new Communications Department, which has assumed such a strategic role in our communication functions.