Financial inclusion: BoG to launch major initiatives

The Bank of Ghana (BoG) is setting a number of targets that will boost financial inclusion in the short term.

Among the set, targets are an Enhanced Credit Information Sharing System by 2022 and the development of an Agent Registry by 2021.

Others are the launch and implementation of sustainable banking principles by 2022, as well as the formulation of a comprehensive policy framework to promote access to finance for Persons with Disability by 2021.

The Central Bank is also hopeful about the development of guidelines for consumer protection in the digital finance space by 2021.

Many analysts and market watchers will highly welcome the credit information sharing system as it will boost the reduction in the cost of credit.

Though there is a credit reporting Act which paved the way for the establishment of credit reference bureau companies to compile information of borrowers, the enhance credit information sharing system will help address the high non-performing loans in the system.

Between 30 to 35 per cent of the Ghanaian population are believed to have bank accounts or have access to bank accounts.

But total registered mobile money accounts stood at 32,470,793 in 2019.

Importantly, mobile money transactions increased to GH¢309.35 billion from GH¢223.21 billion in 2018. Similarly, total float balance increased to GH¢3.63 billion in 2019, from GH¢2.63 billion in 2018.

According to the BoG, the banking sector remained strong, safe and sound in 2019 as the clean-up and recapitalization of the sector continued to yield positive results.

Growth in assets size improved significantly, mainly due to an increase in deposits.

Credit growth at end-December 2019 was strong, despite declines during the course of the year.

During the reporting period, the Central Bank said the industry’s NPLs ratio was the lowest in five years.