Of the 27 universal banks operating in Ghana, only seven are listed on the Ghana Stock Exchange, the governor of the central bank has said. He therefore called on the banks to list on the stock exchange because that has benefits for the banks and the economy.
Speaking at the opening of the Euromoney Conference in Accra last week, Mr. Kwesi Amissah-Arthur, governor of the Bank of Ghana said, the country’s banking system comprises mainly privately-owned banks, but also some banks with government and State institutions as shareholders.
“Currently, only seven of the 27 universal banks are listed on the Stock Exchange. We are encouraging the listing of banks in the local stock market because it presents a number of benefits to the listing institutions in particular, as well as the wider economy. If the other twenty banks get listed on the Ghana Stock Exchange, the number of listed equities will increase to 54, adding momentum to activities on the Exchange,” he said.
He emphasised the importance of the banking system saying, the banking sector is key in resource mobilization and an integral part of the payment and settlement system. He said these activities are vital for the efficient functioning of a market economy.
“The safety and soundness of the banking system hinges on adequate capital and good governance practices, including robust risk management systems,” Mr. Amissah-Arthur said.
According to him, in recognition of the need for risk management, the Bank of Ghana has introduced Risk-based Supervision in its oversight of banks and complemented this with a re-capitalization process for all banks.
“The Bank is taking steps to continually improve its regulatory and supervisory responsibilities to ensure that only strong and well-managed banks operate in its jurisdiction,” he said.
By Emmanuel K. Dogbevi