FLASHBACK: Our banking sector can’t be dominated by foreign-owned banks – Akufo-Addo

On May 21, 2018, President Nana Addo Dankwa Akufo-Addo stated that it is inappropriate for foreign-owned banks to dominate the banking sector.

According to him, it is important indigenous banks are taken care of to withstand any shocks in the banking sector.

Speaking at the 3rd Ghana CEO Summit held in Accra, President Akufo-Addo said, “it is in all our interests that all financial matters are dealt with professionally and without political interference, no matter how tempting. Nonetheless, it is important that the regulator recognises that a banking sector dominated by foreign-owned banks does not bode well for the Ghana Beyond Aid project."

“It is essential that indigenous banks grow and survive in any meaningful reform of the banking system. I am confident that the regulator, the Bank of Ghana, appreciates this,” he stated.

Read the full story originally published on May 21, 2018 by 3news.

The President, Nana Addo Dankwa Akufo-Addo, has charged the Bank of Ghana to help indigenous banks to grow and survive, as part of the ongoing reform of the banking sector being undertaken by the central bank.

According to President Akufo-Addo, the viability of the banking and financial sectors is critical in any nation’s quest for rapid economic development and investment growth, adding that a nation’s economic fortune is often as good as its banking system and the confidence in its monetary environment.

That is why recent scenes in the banking sector, the President noted, has been a cause of worry for many Ghanaians, and was, thus, relieved that the Bank of Ghana is tightening up its regulatory and oversight activities on banks.

“We cannot afford instability or recklessness in the banking and financial sectors. For any loss of confidence in the banks is bound to have a ripple effect on the stability of the economy as a whole,” he bemoaned.

He thus urged all Ghanaians to allow the regulator, which is the Central Bank, to deal with these matters and restore sanity and confidence.

“It is in all our interests that all financial matters are dealt with professionally and without political interference, no matter how tempting. Nonetheless, it is important that the regulator recognises that a banking sector dominated by foreign-owned banks does not bode well for the Ghana Beyond Aid project,” President Akufo-Addo said.

He continued, “It is essential that indigenous banks grow and survive in any meaningful reform of the banking system. I am confident that the regulator, the Bank of Ghana, appreciates this.”

President Akufo-Addo made this known on Monday, 21st May 2018, he delivered an address at the 3rd Ghana CEO Summit, held at the Kempinski Hotel, on the theme “Leadership, Innovation and Investment for Business and Economic Transformation.”

Help create jobs

Describing widespread youth unemployment as the greatest threat to the country’s democracy and its stability, President Akufo-Addo stated that Ghana must develop an economy in which sustainable jobs are created to absorb the youth that enters the job market every year.

“Real, sustainable jobs are created by the private sector, and I urge you to partner the government and take advantage of the opportunities that are coming up. The ‘One District One Factory’ Initiative is one that has been subjected to intense preparation and provides great opportunities,” he said.

Despite Government leading this effort, President Akufo-Addo was hopeful that the private sector will rise to the occasion, identify niche areas, and establish viable industrial concerns in the districts.

This, he said, is the way Ghana can build her own Samsungs, Kawasakis, Suzukis and Hyundais.

“This model of ‘One District One Factory’ is a necessity of our time and a key strategy towards the eradication of poverty and the creation of employment around the country. I urge you to take advantage of the various incentives that have been put in place, and help make a success of the programme,” he said.