Dr. Ernest Addison, Bank of Ghana Governor, has underscored the profitability of the banking industry in Ghana, citing it as a magnet for investors seeking to inject capital into the sector.
He made these remarks during the 117th Monetary Policy Committee (MPC) press conference in Accra. Dr. Addison addressed inquiries regarding the influx of investors applying for new banking licenses, attributing their interest to the lucrative nature of the business.
Despite the allure of banking as a profitable venture, Dr. Addison revealed that no formal applications for new banking licenses have been submitted thus far.
The revelation provides insight into the cautious approach of potential investors, highlighting the need for thorough assessment and strategic planning before entering the market.
While maintaining the policy rate at 29%, Dr. Addison emphatically mentioned that it is imperative to keep the ongoing vigilance in monitoring economic trends, particularly in light of marginal fluctuations in the inflation rate observed in February.
Despite acknowledging elevated credit risks, he affirmed the overall stability of Ghana’s banking sector, noting sustained improvements in liquidity and profitability positions for banks operating within the country.
Commentary by Dr. Ernest Addison, Bank of Ghana Governor
Banking is a profitable business in Ghana so I am not surprised that we still have investors that are looking at putting money into that sector.
Hopefully, we might have somebody formally applying for a license before the end of the year but now we haven’t received any formal application, Dr Addison said.
