THE SITUATION OF THE BANKING SECTOR IN GHANA

THERE IS NO DAY PASSING WITHOUT A DISCUSSION OR NEWS ABOUT THE SITUATION OF THE BANKING SECTOR IN GHANA. THE FINANCIAL OF THE GHANA STOCK EXCHANGE HAS A LONG-RUN DOWNWARDS TREND. AND THE FACT THAT THE GOVERNOR OF THE BANK OF GHANA HAS TO MAKE A STATEMENT THAT THE CENTRAL BANK WILL GO ON ISSUING LICENSES WILL SURELY ALSO NOT CALM THE SITUATION.READ FOR THIS http://www.thebftonline.com SOMEONE MUST THE BANKING SECTOR IN GHANA. THE RIGHT INSTITUTION TO LEAD SUCH A STABILISATION IS SURELY THE CENTRAL BANK. THE  REGULATORY AUTHORITIES FOR THE BANKING SECTORS WORLDWIDE HAVE INITIATED SO-CALLED BASEL PROGRAMMES.

THESE PROGRAMMES CONTAIN AMONG OTHER ISSUES STRESS TESTS FOR BANKS. THESE STRESS TESTS SHOW HOW AND UNDER WHICH CIRCUMSTANCES BANKS ARE ABLE TO WITHSTAND AND SURVIVE CRISES SITUATIONS. AT FIRST, BANKS HAD SOME  DIFFICULTIES IN THE STRESS TESTS. BUT SOON, MOST BANKS IN THE USA AND IN EUROPE WERE ABLE TO DEVELOP STRATEGIES TO SURVIVE THESE STRESS TESTS.

BANKS IN GHANA SHOULD GO THROUGH THESE STRESS TESTS, TOO. MIGHT BE THAT ONLY A FEW OF THEM PASS THE TEST. IT MIGHT EVEN BE THAT NONE OF THEM WILL DO SO. BUT EVEN IF SUCH A SCENARIO COMES TO HAPPEN, IT WOULD NOT BE A DISASTER. IT WOULD GIVE GHANA THE CHANCE TO REVIVE A STRONG BANKING SECTOR UNDER THE AUSPICES OF THE BANK OF GHANA.

WITH ONE STATEMENT, ALL THE POLITICIANS ARE CORRECT. A COUNTRY NEEDS A SOUND FINANCIAL SECCTOR TO DEVELOP A STRONG ECONOMY. ALREADY THE INSURANCE SECTOR AS PART OF THE FINANCIAL SECTOR SUFFERS FROM LOW PATRONAGE. THE COUNTRY CANNOT AFFORD ANOTHER SEGMENT OF THIS SECTOR TO GO DOWN THE DRAIN. THE CUSTOMERS MUST GET BACK ANY KIND OF CONFIDENCE IN THE BANKS.

PERHAPS WE SHOULD START WITH THE RURAL AND COMMUNITY BANKS. THEIR OPERATIONS ARE MANAGEABLE AND MORE EASILY UNDERSTANDABLE. THE BIGGER THE BANKS BECOME, THE EASIER IT IS FOR THEM TO HIDE UNWELCOMED ISSUES.

AND ANOTHER THOUGHT IN RELATION TO THIS. THE FINANCIAL LITERACY OF PEOPLE MUST IMPROVE. THE MORE PEOPLE KNOW ABOUT BANKS AND THEIR OPERATIONS, THE LESS IS THE OCCURRENCE OF PROBLEMS.

RECKLING ENTERPRRISES AND https://www.recklingblog.com AS WELL AS https://www.ghanaresearch.org/wp WILL DO THEIR BEST TO CONTRIBUTE TO THE FINANCIAL LITERACY OF THE PEOPLE.

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