Business News Sun, 19 Nov 2017

No need to launch National Development Bank - Financial observer

Some financial observers have advised the government to reconsider the decision to launch a national development bank next year.

According to them, the move will be a duplication since the government already controls majority shares in some banks that have a focus on the intended reason for setting up the national development bank.

The Finance Minister Ken Ofori Atta during the 2018 budget presentation in parliament announced that government will launch a national development bank with a seed capital of 500 million dollars.

But reacting to the plan, Financial Analyst, and CEO of Sam Bed Consult, Sam Bediako Asante was of the view that government must rather focus on equipping the already existing developments banks with mandates in the issues the national development bank will be addressing.


“Within the banking system, we have National Investment Bank (NIB) and adb bank as the only development banks. I think if the government has anything as far development banks are concerned, then these two banks should be resourced in such a way that they can do exactly the purpose for what they were created,” he argued.

He observed that NIB and adb have the ability to deliver on their targets if their activities are strengthened enforced.

“adb is for Agric and agribusiness purposes, and NIB for industrial purposes. We need to make sure they invest in those areas. We need to make sure they fulfill the purpose of which they were set up. We don’t need another development bank to do that”

Source: citibusinessnews.com
Related Articles: