Banking sector robust, profitable – BoG Governor

The Bank of Ghana has affirmed that the banking sector remains robust, liquid, and profitable.

The central bank has committed to closely monitoring the efforts of banks in restoring capital, aligning with approved plans and receiving support from the Ghana Financial Stability Fund, particularly in the aftermath of the impact of the Domestic Debt Exchange Programme (DDEP).

Governor Dr. Ernest Addison emphasised the expectation for early recapitalisation, aiming to enhance banking sector resilience and facilitate effective financial intermediation to expedite macroeconomic recovery.

Dr. Addison made these statements during a press conference on Ghana’s successful completion of the First Review of the Extended Credit Facility (ECF) Programme with the International Monetary Fund (IMF) on January 19, 2024.×250&!2&btvi=1&fsb=1&dtd=62

Shifting focus to inflation, Dr. Addison expressed the anticipation of a further easing in 2024. This positive outlook is supported by the continued implementation of sound policies, aiming to anchor inflation expectations firmly towards the single-digit objective.

The past year has seen a significant improvement, with inflation decreasing from approximately 54 percent to 23 percent by the end of 2023.

Governor Dr. Ernest Addison reiterated the central bank’s commitment to monitoring both domestic and external developments. The objective is to respond appropriately, ensuring that the recent decline in inflation is sustained without compromising economic growth.

He highlighted the positive economic experience of 2023, marked by a substantial reduction in inflation and stronger economic growth.×250&!3&btvi=2&fsb=1&dtd=66

Discussing the completion of the First Review of the ECF Programme, Dr. Addison stressed the imperative of continued vigilance and commitment in 2024 to implement the planned structural reforms.

Despite recognising the challenges ahead, he expressed confidence in the ongoing economic recovery process.

Dr. Addison underscored the importance of executing necessary structural reforms to foster a more efficient functioning of the economy, ensuring long-term sustainability.

Looking ahead, he urged the country to prepare for the second review of the program and emphasized the critical role of structural reforms in achieving a well-functioning and sustainable economy.


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