BoG Governor optimistic about financial sector stability in 2024

Dr. Ernest Addison, Governor of the Bank of Ghana, has provided insights into the resilience of the country's financial sector amid challenges, and expressed confidence in its stability and profitability at an end-of-year cocktail event.

According to prudential data up to October 2023, Dr. Addison highlighted the continued strength in the profitability of banks, with the Capital Adequacy Ratio surpassing the revised prudential minimum, even after adjusting for regulatory reliefs. He credited this to effective policy initiatives that have positively influenced the economy.

Addressing technological advancements, Dr. Addison revealed substantial investments in correcting data integrity issues inherited from 2016, which led to failures in banks and other Systemically Important Financial Institutions (SDIs).

He proudly announced the completion of a new Supervisory Technology (Suptech) tool, the Online Regulatory Analytic Surveillance System (ORASS). This cutting-edge system, developed in collaboration with technology partners, enhances oversight of the financial system, making the Bank of Ghana the first African Central Bank to implement such a solution.

The governor highlighted the international recognition of their efforts, stating, "We have had Central Banks from South Africa, Egypt, Barbados, Zambia, and Solomon Islands come to learn from us."

Dr. Addison also touched upon the ongoing digitisation efforts in the economy, including the development of a Central Bank Digital Currency (CBDC).

Following the successful eCedi pilot, the BoG announced the winners of the eCedi Hackathon, aimed at fostering local CBDC innovation, knowledge exchange, and building partnerships at a separate event.

Out of 88 applications, 66 were selected for the hackathon, with 10 finalists ultimately chosen.

To conclude, Dr. Addison expressed confidence in the economic outlook, describing 2023 as challenging but fulfilling.

He anticipates a significant improvement in the operating environment for businesses in 2024.