The Second Deputy Governor of the Bank of Ghana, Elsie Addo Awadzi, has reassured stakeholders of the banking sector’s continued solvency and liquidity, despite recent macroeconomic challenges and the ongoing government debt restructuring efforts.
Speaking during the launch of the ABSA SME Loan at 10% proposition to SME businesses, Awadzi noted that the banking sector’s clean-up and recapitalization efforts before the onset of the pandemic provided the industry with the necessary capital and liquidity buffers to withstand the pandemic and recent macroeconomic challenges.
This positive outlook is a testament to the central bank’s strong and decisive actions in recent years to strengthen the banking sector’s resilience and ensure the safety and soundness of the financial system. Through prudent regulation and supervision, the Bank of Ghana has created an environment that enables banks to operate effectively, efficiently and sustainably. However, Awadzi emphasized that the banking sector must not become complacent and should take steps to rebuild strong buffers to ensure its long-term resilience.
The launch of the ABSA SME Loan at 10% proposition is one such step towards building a more inclusive financial system that supports the growth of Ghana’s SME sector. The initiative aims to provide affordable and accessible finance to SMEs, which form a critical part of the Ghanaian economy.
While supervising and regulating banks to promote their safety and soundness, the Bank of Ghana expects banks to be more inclusive in their product and service offerings, ensuring that all economic actors in Ghana can access much-needed finance to grow their businesses and contribute to the growth of the economy.