Ebenezer Ashley, Executive Head of Research, Media, Business Intelligence, and Market Conduct at the Ghana Association of Banks (GAB), affirms that banks are strategically poised to withstand potential economic shocks and financial crises. Their focus is on improving operational performance and ensuring adequate capitalization to boost the economy.
Ashley explains that the banking institutions are well-positioned to endure financial stress while offering enhanced financial services to individuals and businesses in the country and beyond. He emphasizes the positive outlook for the banking industry in the immediate and long term, backed by sustained growth in deposits and higher capital levels, signaling potential financial deepening and credit expansion.
The Executive Head notes the industry’s resilience and profitability, enabled by sustained reforms and prudent operating strategies. Banks are ready to contribute to economic recovery by providing prudent lending to various sectors, especially small- and medium-sized enterprises (SMEs).
The data from universal banks during the first half of 2023 demonstrates a strong performance compared to the same period in 2022. The industry’s aggregated balance sheet reflects robust growth in total assets, boosted by increased total advances. While the debt restructuring program has impacted non-performing loans (NPLs), strategic measures are in place to control costs and achieve organizational targets.
Ashley concludes that banks are aware of their critical role in preserving the country’s financial stability and actively collaborate with the Bank of Ghana and other stakeholders to ensure the sustained stability of the banking industry.