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Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), offered an optimistic outlook on the stability and profitability of the country’s financial sector in 2024. Speaking at an end-of-year cocktail event, Dr. Addison provided insights into the sector’s resilience amid challenges.
As of October 2023, prudential data showcased the continued strength of banks’ profitability, with the Capital Adequacy Ratio surpassing the revised prudential minimum, even after adjusting for regulatory reliefs. Dr. Addison attributed this success to effective policy initiatives that have positively impacted the economy.
Addressing technological advancements, the governor highlighted substantial investments in rectifying data integrity issues inherited from 2016, which had led to failures in banks and other Systemically Important Financial Institutions (SDIs). Dr. Addison proudly announced the completion of a new Supervisory Technology (Suptech) tool, the Online Regulatory Analytic Surveillance System (ORASS). Developed in collaboration with technology partners, this cutting-edge system enhances financial system oversight, making the BoG the first African Central Bank to implement such a solution.
The governor noted international recognition of their efforts, stating, “We have had Central Banks from South Africa, Egypt, Barbados, Zambia, and Solomon Islands come to learn from us.”
Dr. Addison also touched upon ongoing digitization efforts in the economy, including the development of a Central Bank Digital Currency (CBDC). Following the successful eCedi pilot, the BoG announced the winners of the eCedi Hackathon, fostering local CBDC innovation, knowledge exchange, and building partnerships.
Out of 88 applications, 66 were selected for the hackathon, with 10 finalists ultimately chosen.
In conclusion, Dr. Addison expressed confidence in the economic outlook, describing 2023 as challenging but fulfilling. He anticipates a significant improvement in the operating environment for businesses in 2024.
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