sustained. achieving macroeconomic stability takes deliberate policies, sacrifices and resources which if not sustained, can easily unravel. i believe page | 2 this is one of the reasons why we have gathered here to get a sense of the policy direction needed to sustain the stable macro environment, going forward. 5. your excellency, i can report that under your leadership, the policies that we put into place in 2017 are yielding the right results. the economic indicators are good in terms of inflation, external account balances, reserves, gdp growth and business confidence. we have not only made significant gains in stability through prudent monetary and fiscal policies but also in regulatory and structural reforms, especially in the banking sector. this is key to unlocking the financial sector ’ s capacity to intermediate efficiently with increased access to credit in support of the country ’ s growth agenda. indeed, the thrust of current debate is not only about sustainability but also about scaling up broad - based growth for poverty reduction and increased employment. what can be done to consolidate the gains we have made and transition to high and durable growth without putting stability at risk? 6. i will not try to answer these questions but briefly note that sustaining macroeconomic stability, increasing access to credit, providing good infrastructure, having strong regulatory frameworks, and most importantly developing a skilled workforce are all necessary conditions that create the conducive environment for job creation and inclusive growth. your excellency, for us at the bank of ghana the outlook from the monetary policy perspective is to try to understand the nature of the trade - offs between monetary stabilisation, that is, stabilizing inflation at low page | 3 levels – perhaps reviewing our medium - term target to a lower level, and economic growth. 7. monetary policy will remain vigilant to deal with inflation pressures should they emerge. further, the bank of ghana has taken steps to build reserve buffers, to address potential risks from the external or domestic sectors. currently, the country ’ s gross international reserves is estimated at around us $ 8 billion and expected to increase with additional inflows from the cocoa syndicated loan. we are also deepening the foreign exchange market through the introduction of new products to improve liquidity and ensure stability in the local currency. 8. mr. president, distinguished ladies and gentlemen, beyond these broad policy objectives, i believe some of the pertinent issues that should help entrench macroeconomic stability and allay fears of the investment community and private

to the global financial crisis is mainly by way of banks ’ exposure to counterparties in the form of nostro balances and placements of funds with some correspondent banks abroad. stress analysis suggests that only a significant default or recall of borrowings in excess of 50 percent by counterparties could pose material threat to their risk - adjusted capital. moreover, stringent stress tests confirm that the industry as a whole is quite robust to exogenous macroeconomic shocks given the current level of capital adequacy of banks. mr. chairman, over the past year, a number of measures were introduced that should reenforce the ability of banks in ghana to withstand shocks and protect the soundness of the financial system. first, was the increase in the minimum capital of banks from gh¢7. 0 million to gh¢60. 0 million after due consultation with the banking industry. some banks have already begun the capitalisation process. second, the regulatory and supervisory framework was strengthened with the passage of the borrowers and lenders act, 2008 ( act 773 ), the non - bank financial institution act, 2008 ( act 774 ), home mortgage finance act, 2008 ( act 770 ), and the anti - money laundering act, 2008 ( act 749 ). third, in recognition of the growing role of ict in financial services delivery, the bank published guidelines on branchless banking in august 2008, to allow collaboration between banks, telecom companies and merchants to provide greater access to banking and financial services for the banked, unbanked and under - banked segments of the society. fourth, a common electronic platform ( the e - zwich ) was established in a further development of the payment and settlement system making it possible to link all banking institutions with a biometric smartcard as a vehicle for financial inclusion of all segments of the population. this should help deposit - based financial intermediation. further, in line with international regulatory standards, the bank of ghana collaborated with the ghana institute of chartered accountants to push for implementation of ifrs ( international financial reporting standards ) starting with the 2008 accounts. this has brought about greater transparency and comparability of reported financial results. all banks have complied broadly with the directive and reported in line with ifrs. mr. chairman, i cannot over emphasize that a stable and vibrant financial system is a prerequisite for economic growth and expansion. i believe that as stakeholders, we can in our diverse ways, play an immeasurable role in