The Home and Finance Company (HFC) has officially launched its Bank in Accra.
A speech delivered by Dr. S. Nii-Noi Ashong, Minister of State for Economic Planning on behalf of Mr. Yaw Osafo Maafo, Minister of Finance and Economic Planning stated that the NPP Government has committed itself to creating a supporting and facilitating environment where private business enterprise will flourish.
Mr. Yaw Osafo-Maafo said even in the Budget Statement for 2004, the government declared this year as a "Business Friendly Year" by tabling several initiatives that are truly geared to helping businesses, therefore HFC Bank (Ghana) Limited could not have been commissioned at a more opportune time when all the key macroeconomic indicators are pointing in the right direction.
One of key macroeconomic indicators he cited was that through prudent fiscal management, government expenditure have been brought under control resulting in significantly lower borrowing from the banking system.
He said the era of high returns from risk-free treasury bills is practically over and that banks in Ghana have to play the role that banks are traditionally known to perform.
He urged banks to search for and nurture customers and businesses that can consistently discharge their financial obligations to them as financiers.
He said if banks are to succeed in the congenial atmosphere that the NPP government has created, then they must take staff training seriously. In his opinion, banks have failed to realize that it is poor customer care in their banking halls that has discouraged many Ghanaians from having anything to do with banks.
He emphasized that the government would not be tempted to over-shoot its expenditure projections this year to gain favour with the electorate on this year's elections, and for that reason "our projections for single digit inflation by the end of 2004 and sustaining the rate at the level thereafter, will be a lasting legacy to the business community this year and beyond".
He said in an era when leaders of countries in the West Africa Sub-region are forging ahead to integrate economies for their mutual benefits and the overall development of the region, it is indeed gratifying that HFC Bank has joined hands with Union Bank of Nigeria as a necessary first step in extending their services to facilitate trade, and other activities in the ECOWAS Sub-region.
He confirmed that the government has proposed additional measures to deepen the financial sector, adding that the implementation of the new Financial Sector Strategic Plan which was approved by Cabinet last year will be accelerated this year to allign the pace of modernization in our financial sector with Government's development agenda and established best practices.
He congratulated HFC and wished them astounding success in their new calling Dr. Stephanie Baeta Ansah, Managing Director HFC (Ghana) Limited said HFC has truly come of age and the company is committed to being the leading mortgage financier, commercial and investment bank of first choice, widely acknowledged for excellent customer care and innovation.
He said "We have also designed and marketed the first corporate bonds on the Ghanaians financial market which are currently the only such instruments traded on the Ghana Stock Exchange.
He recounted that through the dynamic first investment in HFC by Union Homes Saving and Loans Ltd. (UHSL), HFC is now privileged to have 20% shareholding in the bank by the well -established and profitable Union Bank of Nigeria Plc.
He confirmed that the Union Bank of Nigeria Plc is one of the two largest banks in our sister West Africa nation of Nigeria.
He said that the new partnership HFC has formed with the Union Bank of Nigeria Plc will ensure the bank's competitiveness and professionalism in commercial banking, the latest addition to our range of universal banking products and service.
He however said HFC is still committed to operate an apex or secondary mortgage finance facility, and to purchase investment quality residential mortgage from the market.
Dr. GAT Oboh Managing Director/Chief Executive of Union Bank of Nigeria Plc said it is pertinent to observe that the macroeconomic incentives of the Government of Ghana have made Foreign Direct Investment (FDI) attractive to private entrepreneurship, which will in th e long -run promote the industrial take -off of the country.
He again noted that the commencement of operations of HFC Bank as a universal bank will not only help to lubricate the economy, it will surely and deservedly contribute to the competition in the banking industry thereby increasing and widening the spectrum of choices available to the Ghanaian banking public.
The Vice President Alhaji Aliu Mahama commissioned the bank.
