[ad_1]
<! –
->
The banking sector is essential to the proper functioning of an economy. It looks like oil in an engine or blood in humans. Without it, a system can exist, but without much renown.
In Ghana, there are currently 23 banks, of which 14 are under foreign control and 9 are under national control.
By the end of December 2018, the banking sector had contracted a total of GHG 36.5 billion in loans. As a growing economy, where do you think loans should be channeled to the maximum?
In Thursday's edition of PM EXPRESS: BUSINESS EDITION, we sought to understand why banks had this lending behavior and what it was possible to do.
Nana Otuo Acheampong, a banking consultant, believes that the banking sector is a risk and it is therefore not prudent to take short-term deposits and channel them to long-term sectors such as agriculture. He thinks the government needs to intervene in such areas.
Humphrey Ayim-Darke believes that this reflects our structure and our economic fundamentals and is therefore the only response of the banks to the economic model adopted by the country.
As an industrialist, he advocates for the creation of banks that will support these sectors, as was the case in the 1970s in Ghana, where specialized banks were created to meet the needs of the agricultural and industrial sectors.
[ad_2]
Source link
