The Standard Chartered Bank International, with its new regional headquarters in Accra to oversee the operations of its activities in the West African sub-region sees Africa as a continent of great promise. Mr Vishnu Mohan, Chief Executive of Standard Chartered Bank Ghana, shares his views on the economic development of the country in an interview with African Review. Below are excerpts of the interview.
Q: The Standard Chartered Bank Group has undergone a re-organisation of its African operation which has made a significant contribution to overall group performance in recent years. Could you throw more light on this?
A: The African region is fast becoming an important division of the group. Africa has made an increasing contribution to group profits in recent years following a strengthening of business focus. The group is therefore investing more in the business and in the development of people.
Q: The African business has been re-grouped into four main areas of West, East, southern and Zimbabwean regions. Accra was chosen as the headquarters of the Western Region, comprising Ghana, Sierra Leone, Tbe Gambia and Cameroon. Can you elaborate on the reasons for this?
A: The area general manager concept was created to ensure the implementation of consistent business strategies and policies. The area general managers will be responsible for achieving profit targets in the region and for building a business framework, while operational responsibility will be delegated to their chief executives. This structure supports our vision of being "the world class bank in Africa". Ghana is the largest of our operations in West Africa and, with its improving economic atmosphere and better infrastructure, it makes sense to locate the West African regional office in Accra.
Q: Do you think the government's general economic policy framework gives room for good banking practices in Ghana?
A: We have every confidence in the Economic Recovery Programme of Ghana, and the bank will continue to play an increasingly active part in Ghana's development.
Q: Ghanaian bankers, economists and financial analysts have expressed concern about the high rate of interest being charged by the bank. What is your reaction to his complaint?
A: Prevailing rates of interest are quite often reflective of monetary measures which are in place, and high interest rates are economic measures to reduce excess liquidity in order to stabilise the economy. Rates will go down as soon as the economy is deflated.
Q: Do you think the current interest rate charged by your bank is attractive and profitable to the business community?
A: The patronage of our loan facilities at the levels we have today indicates acceptability. As to the level of profitability of the businesses that borrow, I believe that has to do with their own plans and projections. Most of the businesses we deal with are well managed.
Q: Standard Chartered Bank has introduced electronic banking in Ghana through its current operation and the Automated Teller Machine card (ATM). What impact has this had in terms of operational efficiency and customer satisfaction?
A: Electronic banking does not mean just ATMs. We have installed SWIFT remittance facilities, Eximbill trade banking electronic letter of credit facilities and access to customer accounts via PCs. All these offer our customers the best of modern banking convenience.
Q: How competitive is the Standard Chartered Bank as far as banking in Ghana is concerned?
A: Standard Chartered is the most efficient bank in Ghana today and the most profitable on a per capita basis.
Q: The Standard Chartered Bank has recently sold some of its branches at Koforidua, Sunyani and Swedru to the Agricultural Development Bank. What prompted the sale? Do you think customers have cause to complain?
A: This is a decision to rationalise our distribution network and maximise shareholder return. Of course, some customers will complain, but that is to be expected. We believe we did our best to communicate effectively with our customers prior to the sell-off of the branches you referred to. On the other hand, we have a new branch at Osu.
Q: In 1987, the Government of Ghana initiated measures to restructure the banking sector in the country. To what extent has your bank responded to the banking reforms?
A: As a bank, our own policies and strategies have always been very much in tune with the government's restructuring initiatives. We welcome new initiatives.
Q: How responsible has the Standard Chartered Bank been to the Ghana community as a whole?
A: In all countries where we operate, we are in tune with our civic responsibilities. Our commitment to local communities is always made manifest by our support for health, education and the underprivileged, and by our support for government agencies with similar aspirations.
Q: How dependable has the bank been over the past 100 years as a partner in the private sector development of Ghana?
A: The answer lies in your question. If we have been here for 100 years, then we can claim to be dependable. We have grown from strength to strength and have always played an active part in Ghana's private sector.
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