Banking

Since the late 1980s Ghanaian banks have increased in stature and number, and for much of the last decade they have enjoyed strong growth rates and large profit margins. The country’s lenders have maintained their stability, avoiding the domestic crises that have befallen some of their emerging and frontier market peers, and sidestepping much of the fallout from the global financial crisis. The tripling of minimum capital requirements by the central bank should help increase credit flow by encouraging small local banks to consolidate, resulting in bigger banks with the capital and capacity needed to clean up loan books, and steer more credit to the private sector. This will also enable institutions to finance larger and more capital-intensive projects.

The chapter contains interviews with Ernest Addison, Governor, Bank of Ghana; and Archie Hesse, CEO, Ghana Interbank Payment and Settlement Systems.