Business in Ghana

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Posts Tagged ‘BoG’

Batakari For My Jacket. Critical News, 10th May 2015

Posted by Business in Ghana on May 10, 2015

Sydney Casely-Hayford, sydney@bizghana.com

On Tuesday, 31st May 2011, I organized and hosted a program I called The BiG Debate. We looked at the issue of high bank interest rates and its impact on Ghanaian businesses.

At that time, with bank interest rates as high as 30% in some cases and spreads ranging between 12% and 15%, banks continued to make high profits despite the claim that non-performing loans were a restriction on their performance and a key reason for less lending.

But there were other related arguments suggesting that Regulators, Government, Borrowers of Funds, Lenders to the banking sector as well as Bank’s own weak accounting all contribute in large measure to the persistently high lending rates in Ghana. Clearly, our stuttering economy would benefit from lower borrowing rates in the market place.

How to intervene and trigger a downward spiral in favor of the borrower has eluded analysts, Government and Donors. The BiG Debate attempted to identify the intervention points and offer answers to Government.

Treasury Bill rates were at 10%, and the competing business of risk lending took a back-step while Banks diverted deposits into 91-day bills and quicker profit yielding trade.

Two years on, the T Bill rate is at 25% and the situation is worse now than it was then. Read the rest of this entry »

Posted in Critical Weekly News, Sydney Casely-Hayford | Tagged: , , , , , , , , | Leave a Comment »

First National Obtains Universal Banking Licence

Posted by Business in Ghana on June 18, 2014

First National Savings and Loans Company Ltd has obtained a provisional licence from the Bank of Ghana (BoG) to operate as a universal bank.

To be known as First National Bank Limited under the new operational licence, the feat has largely been as a result of the fast growth the company has chalked up, with its expansive network across major capital cities, rural and urban centres around the country.

This has endeared the company to many traders, small and mediums scale enterprises.

The new license allows the company, which will soon announce its re-branded status, to deliver a vast array of financial services such as trade financing, all forms of deposit taking, foreign exchange services, issuance of cheques and settlement of cheque transactions.

The Chief Executive Officer of First National, Mr Patrick Anumel, told the Daily Graphic shortly after a press briefing in Accra last Tuesday that the bank was now in a position to help its customers better by providing them with enhanced services.

He said the focus of the bank had, however, not changed as it was still aimed at serving the ordinary Ghanaian, including farmers, market women, students and operators of SMEs.

Mr Anumel noted that the depreciation of the cedi and the rise in inflation rate had affected the cost of doing business in the country.

He stressed the need for the bank to improve on its services with a diversified range of services.

“If you have a diversified range of services, then it means that your source of revenue is also going to be diversified and therefore favour you,” he explained.

Posted in Financial Services, Uncategorized | Tagged: , , , , | 3 Comments »

Fear Not, NDC Got Your Back. Critical News, 15th June 2014

Posted by Business in Ghana on June 15, 2014

Sydney Casely-Hayford, sydney@bizghana.com

I reconnected with my very good friend Adams during the week.  He called; we arranged lunch and met at the Imperial Peking to catch up on long past jokes from the Zoology department where we spent many an afternoon trying to understand snakes and snails, Legon-style.

It was a good lunch, we explored all the possibilities on the menu and finally settled for shrimp fried rice, soup noodles and wonton soup starter.  Made a big difference from my usual chop bar banku and okro soup or fufu from around the corner at Asylum Down.

Adams is an NDC faithful, comes from dedicated party stock and we were reminiscing about days gone by and the observed habits of the red ant from Mango and Neem trees; the things people discuss at lunch, eh?

We avoid talking politics, because we have had too many historical run-ins, but unfortunately, today’s lunch was to be an exception.

So I was recanting how I recently noticed trains of Solenopsis invicta (or red fire ants for those of you who did not take zoology seriously), in single line convoying from one end of my driveway to the other.  I found this rather strange, because red ants don’t often leave their residencies, preferring to create mounds to protect their Queen.

They are a very busy lot, strategically organized in defense and attack.  Created not to die too easily, they breathe through a system of tracheal tubes, able to revive gases to the double bulbs connecting internal organs and tissue.

So we are being academic and really getting into the subject when we are interrupted by a group of Daily Guide readers who recognize me from my page 28 column and also a few appearances on TV.

I end courtesies and return to Adams, who pops me a left hook question, throws me off and I reel back, bowled over.

“Have you heard that Nana Addo will be using a helicopter for his campaign this year?” Read the rest of this entry »

Posted in Critical Weekly News, Sydney Casely-Hayford | Tagged: , , , , , , , , , , , , , | Leave a Comment »

The Relevance Of The Monetary Policy Rate In The Monetary Transmission Mechanism

Posted by Business in Ghana on August 5, 2012

Source: Center for Policy Analysis.  http://www.cepa.org

In May 2007 the Bank of Ghana formally adopted inflation targeting (IT) as the framework for stabilizing prices within the economy. Since then, significant progress has been made in developing the policy framework as well as the institutions and markets that underpin its implementation _ money and capital markets have been developed, there is a framework for forecasting liquidity, and a broad range of instruments with which to conduct monetary policy is available.

The monetary policy tool of the BOG is the monetary policy rate (MPR) _ the rate at which commercial banks can borrow from the central bank _ and it is set at a level that is consistent with meeting the BOG_s inflation target. The MPR, thus, is expected to communicate the stance of monetary policy and act as a guide for all other market interest rates. Read the rest of this entry »

Posted in Financial Services, Uncategorized | Tagged: , , , , , , | Leave a Comment »

The Composite Index of Economic Activity is Improving, So What, says the Informal Sector

Posted by Business in Ghana on October 30, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

The Bank of Ghana (BoG) uses an aggregate of indexes, grouped and called the Composite Index of Economic Activity (CIEA) to guide the Bank’s Monetary Policy Committee in its bi-monthly report and policy interest rate setting.

The CIEA gets little mention in the financial press compared to its more well-known counterpart the Gross Domestic Product (GDP).  The GDP is produced by the Ghana Statistical Service (GSS) and the CIEA is a BoG product.  However, according to the Monetary Policy Analysis Division of the BoG, the CIEA tracks the GDP very closely and is taken by the BoG as a very good indicator of business confidence.

Once a month the Monetary Policy Analysis Division (MPAD) of the BoG undertakes a real sector survey of the economy.

Let me explain the CIEA a little more. Read the rest of this entry »

Posted in Financial Services, Sydney Casely-Hayford | Tagged: , , , , , , , , , | 3 Comments »