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    Gov’t still plans on tabling a legislation to compel banks to lend to the Agric sector – Agric Minister

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

    Enterprise Group PLC records 37% rise in revenue in 2021

    Prices of petrol, LPG to fall by 4% in first pricing window of July – IES

    Losses due to fraud in banking sector in 2021 up by 144%; hits GH¢61m – BoG report

    ASTM International pledges support for Ghana’s petroleum industry

    NIB MD laments cost of borrowing for private sector

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    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

    Losses due to fraud in banking sector in 2021 up by 144%; hits GH¢61m – BoG report

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    Gov’t still plans on tabling a legislation to compel banks to lend to the Agric sector – Agric Minister

    AfCFTA Secretariat calls for accelerated dev’t for key infrastructure in Africa to boost trade

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

    Enterprise Group PLC records 37% rise in revenue in 2021

    Prices of petrol, LPG to fall by 4% in first pricing window of July – IES

    Losses due to fraud in banking sector in 2021 up by 144%; hits GH¢61m – BoG report

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    Gov’t still plans on tabling a legislation to compel banks to lend to the Agric sector – Agric Minister

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

    Enterprise Group PLC records 37% rise in revenue in 2021

    Prices of petrol, LPG to fall by 4% in first pricing window of July – IES

    Losses due to fraud in banking sector in 2021 up by 144%; hits GH¢61m – BoG report

    ASTM International pledges support for Ghana’s petroleum industry

    NIB MD laments cost of borrowing for private sector

    Finance professionals urged to develop strategies to boost ESG-driven business environment

    Gov’t likely to scrap E-Levy if its revenue stays low – Tax analyst

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    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

    Losses due to fraud in banking sector in 2021 up by 144%; hits GH¢61m – BoG report

    BoG, CSA deepen collaboration to fight cyber threats

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

    ADB pioneers in global remittance services in Ghana [ARTICLE]

    Introduction of GhanaPay complements efforts to capture the unbanked into digital payments ecosystem – Veep

    #CitiBusinessFestival: How the country can take advantage of the “Ghana Opportunity”

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    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

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    Ticket prices to rise following B.A schedule change on Accra-London-Accra route

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BoG clean up responsible for banks’ resilience to COVID-19 shocks – Consultant

byMinna Dablu
June 22, 2020
in Banking And Finance, Local Economy, Top Stories
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A banking consultant, Nana Otuo Acheampong  has said the financial sector cleanup carried out by the Bank of Ghana, is responsible for the resilience of banks amidst the COVID-19 pandemic.

A new report by the Bank of Ghana has established that even though banks have been resilient to shocks amidst the COVID-19 pandemic, the same cannot be said for Specialized Deposit-Taking Institutions such as Savings and Loans Companies and Microfinance firms.

Nana Otuo Acheampong told Citi Business News the capital base of the 23 banks in the country have become stronger than all 317 Specialized Deposit-taking Institutions (SDIs) put together.

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This he says can be credited to the financial sector clean-up which saw the revocation of licenses of nine commercial banks aside from the twenty-three insolvent savings and loans companies and finance houses, and the 347 microfinance firms that were also declared insolvent.

“The capital base of the Banks is now stronger than the others put together. The Bank area is where the regulator has reformed and increased their capital base from 70 million to 400 million. The rest, their capital base is relatively small so when it comes to banking, people tend to flock to the those who have bigger capital base”.

The report showed that the robustness of the Specialized Deposit-Taking Institutions sector was negatively affected by the adverse impact from the COVID-19 spread. For instance, the Specialized Deposit-Taking Institutions sector showed constrained liquidity conditions and capital shortfalls.

And according to Mr. Otuo Acheampong, “ The other factor, which goes against the principle of banking where we say that “Banking is based on the Law of Large numbers’, that is to say that more people will deposit than withdraw, but we see the reverse in the non-universal banking sector (SDIs) but the withdrawals there are relatively higher as opposed to deposits, while with the universal Banks, the deposits are relatively higher because people feel more secure. They can see that the banks have the capital to withstand any immediate shock in terms of liquidity and credit.”

As people increased withdrawals as against deposits during the first few months of the pandemic, Nana Otuo Acheampong believes liquidity risks await some of these SDIs if the Covid-19 situation persists.

“People are withdrawing the cash, and because those people who bank with SDIs usually live from hand-to-mouth like market women, traders and so on, they need access to cash more than those who put their monies with the banks, that is, medium to large corporate entities,” he explained.

A liquidity stress test conducted by the Bank of Ghana indicated a decrease in the survival rate of the Specialized Deposit-Taking Institution sector over time.

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