Dr. Cassiel Ato Forson, the Minority Leader, has voiced his concerns over the challenges faced by Ghanaian banks and the government policies that have led to the erosion of capital in these institutions. In particular, he criticized the implementation of the government’s Domestic Debt Exchange Programme (DDEP), which he believes has limited the ability of banks to lend to businesses. Dr. Forson expressed worry about the financial difficulties faced by local banks, which play a crucial role in supporting small and medium-sized enterprises (SMEs) in Ghana. He called for discussions among stakeholders to find ways to support these banks during this difficult period.
According to Dr. Forson, the government’s policies have seriously affected the capital of many local banks, which has had a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of Ghana’s economy. He believes that it is time for serious discussions about how to support local banks and help them weather this difficult period.
Ghana’s banking sector has faced numerous challenges in recent years, including the restructuring of the country’s local currency and overseas debt. This has resulted in significant losses for banks such as GCB Bank Plc and Standard Chartered Bank Ghana Ltd. According to Bloomberg, banks operating in Ghana have suffered a total loss of about $1.4 billion due to the restructuring of most of the country’s public debt, estimated at 576 billion cedis.
The challenges faced by Ghanaian banks have raised concerns about their ability to support SMEs in the country, which are critical to the growth of Ghana’s economy. The erosion of capital in local banks has limited their capacity to lend to these businesses, creating a difficult environment for SMEs to operate in. As such, it is essential to find ways to support local banks during this challenging period, including discussions among stakeholders and the development of policies that can help these institutions weather the storm.
For the most part, the challenges facing Ghana’s banking sector are complex and multifaceted, requiring a comprehensive approach to address. However, by working together and implementing policies that support local banks and SMEs, Ghana can overcome these challenges and continue to grow its economy.
Source: Graphic online.