Prime News Ghana

End of banking sector clean-up exercise will bring about significant growth in loans

By Justice Kofi Bimpeh
Banks in Ghana

A Banking consultant, Nana Acheampong has said the end of the banking sector clean-up exercise by the Bank of Ghana will bring about investor confidence and loan extension.

The banking consultant noted that the end of the exercise has a positive outlook for the banks, shareholders and customers as well.

The Bank of Ghana early this year 2019 announced an end to the banking sector clean-up exercise which lasted for two years.

The regulatory reform focused on an increase in capital requirement of the financial institutions, reviewing of the corporate governance laws and also ensuring that only certain category of individuals can take up positions in the banking sector.

Sharing his expert view on Accra based radio station JoyFM, monitored by PrimeBusiness, Banking consultant Nana Acheampong said the end of the clean-up exercise “is going to benefit the banks themselves and their shareholders and customers because it looks like banks will chasing customers for investment into projects..”

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He added that the exercise will make the banks bigger and stronger to be able to deal with the expanded economy which is going to continually expand because of the oil discovery.

Bank of Ghana for the past two years have carried out a clean-up exercise in the banking sector, merging the insolvent banks and reducing the number of banks in the country to 23 duly licensed banks.