Banking sector improvement reflection of reforms

THE relative improvement in the banking industry in recent times is a reflection of the reforms undertaken in the sector over the last two years, Governor of the Bank of Ghana, Dr Ernest Addison, has said.

He said the improvement was due to the fact that the sector had seen customers move from weaker institutions that were no longer in operations to stronger financial institutions.

Speaking at the 20th anniversary of Stanbic Bank Ghana, last Thursday he said:

‘When I look at the data that has been published by the banks and the improvement in their numbers in terms of the interest income, profitability, liquidity and loan growth, I know that those improvements are coming because of the flight to quality.

“As I have said already, the reforms by the BoG have resulted in an improved banking sector that is well-capitalised, liquid and profitable to support the country’s growth agenda,” he stated.

He noted that it was critical that the process to build strong and efficiently supervised financial system within a fair regulatory environment be sustained in accordance with international best practice and standards.

“We are optimistic that the reforms that have been embarked on are in the right direction and with the collaboration of stakeholders, we can work together to ensure a sound and safe financial system,” he added.

African banking sector

The Governor indicated that Stanbic Bank was an integral part of the regional Standard Bank Group and, therefore, had a unique opportunity to positively impact other African banking sectors, foster regional trade across the continent and support the overall regional economic integration agenda.

“Our expectation is that Stanbic Bank Ghana and the Standard Bank Group will work positively to impact the economies and livelihood of all Africans.

“The strong emergence of pan-African banks provides immense opportunities for the continent to drive its development agenda, and Stanbic Bank is a key player of such banks in Ghana.

“As we look forward to the expected dynamics of regional trade following the African Continental Free Trade Agreement (AfCTA), such regional Pan African banks should play key role in leveraging regional strategic partnership to support economic development and transformation of the continent,” he added.

Story of Stanbic
The Chief Executive of Stanbic Bank Ghana, Mr Alhassan Andani, noted that Stanbic Bank Ghana had thrived on the patience of its shareholders.

“Since I joined this bank, we have paid dividend to shareholders only once, but even with that, the bank went back to the shareholders the following year to collect that money.

Although the bank has been profitable over the past 20 years, our shareholders have been extremely patient and have allowed management to use all of its profits as retained earnings to continue to grow the brand.

“Ours is the story of a dedicated staff right from the beginning with superior leadership from a very carefully chosen board whose members have given their best to support its growth,” he added.

Focus of the board

The Board Chairman of the bank, Professor Ernest Aryeetey, stated that the bank would focus on its clients, because they are the driving force behind everything the bank does.

According to him, the board had now decided to be at the centre to push and steer the bank’s growth.

“The employee engagement is the next big thing for the bank.

Our employees are very happy with their jobs but we want to ensure that the happiness is sustained for a longer period,” he added.