Gov’t must force banks to support manufacturing – J. A. Biney

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• Enoch/UK 11 years ago

  You have said it all J.A Biney but who is listening? certainly not John Mahama and his "Yentie Obiaa" government. they will never listen to you period!

  You have said it all J.A Biney but who is listening? certainly not John Mahama and his "Yentie Obiaa" government. they will never listen to you period!

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• KWAME KWAME 11 years ago

  Exactly! Great solution indeed. Hope Government will take this seriously. In some countries such as Egypt, Commercial Banks are expected to allocate a certain proportion of their lending resources to sectors that otherwise ...
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  Exactly! Great solution indeed. Hope Government will take this seriously. In some countries such as Egypt, Commercial Banks are expected to allocate a certain proportion of their lending resources to sectors that otherwise will not receive financing easily. This policy is enforced strictly by Government policy so every Commercial Bank follows it. Such a policy has helped especially not only the manufacturing sector but the agriculture sector; the two ost important sectors that can be engines of growth of our economy through the creation of jobs and wealth.
  If there is no such policy with strict oversight to ensure its enforcement, our commercial banks will only put their funds in Government Treasury bills and go to sleep whilst they wait for their returns to flow in risk-free. Commercial Banks operate in the country and so they and all other financial institutions should share in the risk of financing our private sector especially the manucfacturing and agriculture sectors. That should not be the responsibility of the Government alone.

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• SBD 11 years ago

  How do you force a private bank to lend to manufacturing companies? The banks do their due diligence with the companies they support, and not all manufacturers should be supported.
  
  Why not ask the Bank of Ghana lend money ...
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  How do you force a private bank to lend to manufacturing companies? The banks do their due diligence with the companies they support, and not all manufacturers should be supported.
  
  Why not ask the Bank of Ghana lend money to theses manufacturing companies (if they do exist) through a government designated bank? That will be easier, but don't expect Barclays or Standard Chartered to lend to a crappy manufacturing entity?

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• EZEKIEL 11 years ago

  BUYING and SELLING is the Economy of Ghana...apart from the Raw Material- Export with NO VALUE ADDED!
  The Blackman has STILL NOT GOT IT with developmental issues!!!!!
  JOB CREATION,especially in MANUFACTURING... is the BACKB ...
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  BUYING and SELLING is the Economy of Ghana...apart from the Raw Material- Export with NO VALUE ADDED!
  The Blackman has STILL NOT GOT IT with developmental issues!!!!!
  JOB CREATION,especially in MANUFACTURING... is the BACKBONE of every economy in the world !

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• PEKI TUMU 11 years ago

  Unrealistic. Banks are in business to make money
  
  If the government wants to it can form its won Bank to lend to these manufacturing Comapnies

  Unrealistic. Banks are in business to make money
  
  If the government wants to it can form its won Bank to lend to these manufacturing Comapnies

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• KWAME KWAME 11 years ago

  While your suggestions is also laudable, keep in mind Gov't resources alone will not be enough. After they finance infrastructure and social projects such as electricity, roads, rails, schools, health, water and sanitation et ...
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  While your suggestions is also laudable, keep in mind Gov't resources alone will not be enough. After they finance infrastructure and social projects such as electricity, roads, rails, schools, health, water and sanitation etc. where will Gov't find additional funding to lend to most manufacturing businesses?
  
  If other countries can do this, so can we.

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• Taharka 11 years ago

  Most of the commentators here don't know what they are talking about particularly the ones criticizing. Next time you economically ignorant people slather over that new Samsung phone, or that KIA car bear in what mind you hav ...
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  Most of the commentators here don't know what they are talking about particularly the ones criticizing. Next time you economically ignorant people slather over that new Samsung phone, or that KIA car bear in what mind you have that South Korean banks and CEOs during the 70s. Were virtually under economic dictatorship and the banks were told in no uncertain terms to support local manufactures. Or be replaced or sent to jail good things take time and effort with an element of sacrifice to attain the greater good for the nation. I don't think allot of Ghanaian's got that memo oh well, keep going to your mega churches and prey to that long haired hippy who
  never listens to you. I don't think God if he or she exists hates anyone more than he or she idiot.

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• Lord Tennison 11 years ago

  Banks are not good Samaritans.They are
  in business for profit.So if an investment has high risk they either steer away from it or lend at a high interest rate to compensate for the default in payment risk.Also bear in mind t ...
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  Banks are not good Samaritans.They are
  in business for profit.So if an investment has high risk they either steer away from it or lend at a high interest rate to compensate for the default in payment risk.Also bear in mind that banks as financial intermediaries borrow money from their depositors and lend it to loan seekers.So they have a responsibility to keep the depositors money safe.Hence the necessity to exercise greater caution in their lending decisions.
  If a manufacturing company has been in business for a while and can produce financial statements including a cashflow one showing an upward trending profit,it should not be difficult to obtain finance from a bank.Many banks lend on the strength of financial statements.The government cannot compel banks to invest in risky ventures especially when the Bank of Ghana has a supervisory role to ensure that there is adequate liquidity radio and equity market capitalization and an overall sound financial system.
  If John Mahama had not overspent to bankrupt our country, there could have been business grants and loans to give impetus to our teething manufacturing industries.Another help can be corporation tax exemptions and holidays to make them liquid so they can fund new equipment purchases and expand to create jobs.

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• KWAME KWAME 11 years ago

  You are raising another interesting point as regards taxes and other incentives to banks as they implement such policy. Gov't policy can include that as well. What the writer is proposing is for banks to help more in build ...
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  You are raising another interesting point as regards taxes and other incentives to banks as they implement such policy. Gov't policy can include that as well. What the writer is proposing is for banks to help more in building the country's economy by allocating a portion of their lending resources (not all of it) to industry and agriculture. Here again there could be some kind of government guarantees to mitigate the risks banks are afraid of in lending to these sectors especially the SMEs.

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• tettey winfred 11 years ago

  MANUFACTURERS SUFFER IN GHANA. FOR INSTANCE MASSIVE SCALE ADJUSTMENTS IN COCOA SECTOR IS DESIGNED TO PUNISH COCOA FARMERS FOR PRODUCING QUALITY COCOA

  MANUFACTURERS SUFFER IN GHANA. FOR INSTANCE MASSIVE SCALE ADJUSTMENTS IN COCOA SECTOR IS DESIGNED TO PUNISH COCOA FARMERS FOR PRODUCING QUALITY COCOA

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