annual dinner of the chartered institute of bankers ( ghana ) address by dr. ernest addison, governor, bank of ghana the state banquet hall, state house, accra december 02, 2017 the president of the chartered institute of bankers, chief executive officer of the institute of bankers, fellows of the institute, members of the banking fraternity, distinguished guests, ladies and gentlemen introduction 1. good evening to you all. it is an honour and a great pleasure to be here tonight. not to forget, it is also my first time in my role as governor of the bank of ghana to address this annual event which brings the finest banking professionals and other stakeholders in the financial industry. certainly, this joyous occasion should provide us the opportunity to destress from our very busy schedules and a rather challenging year for the banking industry. 2. we do have sumptuous meals to eat tonight, and while doing that, i will crave your indulgence over the next few minutes to discuss two key issues deemed critical for the central bank ’ s vision of building stronger and resilient banks in the economy. these are building a stronger economy for robust and resilient banks and strenghtening the corporate governance structures of our institutions within the broader financial sector plan. 1 | page 3. we have started seeing some recovery in the economy after a period of slow growth attributed to challenging domestic and external conditions, with a sharply deteriorated fiscal position due to weak revenue mobilisation and unconstrained spending in the round up to the elections. the large fiscal imbalance impacted on the current account balance leading to a significant deterioration. 4. by the end of 2016, the macroeconomic risks in the economy with inadequate international reserves, a volatile exchange rate, high inflation and rapid accumulation of public debt was a source of concern. these developments were compounded by the energy crisis and disruptions in oil production. the weak economy and problem in the energy sector affected the banking industry with high non performing loans. the environment of high inflation and high depreciation eroded the capital base of banks in real terms and coupled with the impact of the required provisioning due to non performing loans, led to a need for several banks needing to rebuild their capital buffers. the decline in the real capital base of banks when macroeconomic environment is weak provides ample reason why macroeconomic stability must be of utmost priority for building a strong and sustainable banking sector. 2 | page 5. ladies and gentlemen, this is exactly what the first order

charles c soludo : the safety and soundness of the nigerian banking system press statement by professor charles c soludo, governor of the central bank of nigeria, on the safety and soundness of the banking system, abuja, 12 june 2007. * * * this briefing is to clarify some pertinent issues regarding the state of springbank, and to reassure the nigerian public that the banking system is the safest and soundest it has ever been in its history, and that the cbn and ndic will take all necessary measures to protect all depositors of the banking system. i : banking sector consolidation : progress so far as you are all aware, the banking sector consolidation programme was necessitated by the pervasive weaknesses and uncertainty of the banking system, and the need to re - engineer and fast - track a system that will engender confidence and power a new economy. so far, the grand objectives of that policy are being achieved, and our consolidation programme has been adjudged about the most successful in the world. the world is celebrating nigeria ’ s success, and over $ 1 billion of foreign investment has gone into the sector within the last 12 months, and several hundred millions of dollars are still pouring in. the non - performing loans as percentage of total loans have gone down from about 23 % before consolidation to less than 8 % currently ; total deposits have almost doubled, and credit to the private sector growing astronomically ( annualized at 72 % within the first four months in 2007 ). today, individual banks can finance big projects valued at hundreds of millions of dollars and also operate in the oil and gas sector – a feat they never could do before now. interest rates are gradually coming down. as at today, there are over 3, 866 branches of commercial banks, up from 3, 200 prior to consolidation and the total employment in the sector far higher than prior to consolidation. by end 2007, there will be about 7 or more banks with shareholders fund in excess of $ 1 billion, and over 10 banks with market capitalization of over $ 2 billion each ( there was none in 2004 ). today, nigeria has the fastest growing banking system in africa, and one of the fastest in the world. as seasoned commentators have observed, it has taken nigeria less than three years to achieve what it took south africa 20 years to achieve in the area of banking. to put it succinctly, a new banking system has emerged, and will only get stronger