BoG universal banking concept progresses steadily

Kumasi, June 17, GNA - The implementation of the universal banking concept policy by the Bank of Ghana (BoG), which commenced in 2003, is progressing steadily.

Mr Mohammed Bawumia, Deputy Governor of the Bank, who announced this, said banks that had not yet complied have up to the end of 2006 to do so.

In a speech read on his behalf at the official opening of the Adum branch of the International commercial Bank (ICB) in Kumasi on Friday, the Deputy Governor said as of date, nine banks had cquired the universal banking status.

He said as part of the concept, the minimum capital of banks was raised to 70 billion cedis, stressing that this policy initiative was aimed at ensuring that banks would operate on a level playing field.

Mr Bawumia indicated that the BOG was observing changes in the banking system, which would result in efficient performance of banks and ensure improvement in the achievement of their basic functions.

"The transformations taking place are reflecting in the general structure of the banking system as well as in the operational arrangements of the banks", he said.

The Deputy Governor pointed out that the key factors that had contributed to the structural transformation include the promulgation of the New Banking Act, Act 673 and the Universal Banking concept Policy introduced by the BOG.

He said these factors coupled with the improved macro economic management had created an environment, which had generated confidence in investors resulting in the attraction of equity into the banking industry in recent years.

Accordingly, Mr. Bawumia said three new banks have been licensed and commenced operations within the last two years whilst existing banks have received significant injection of fresh capital. Mr. Lalgudi Krishnamurthy Ganapathiraman, the Chief

Executive Officer of the ICB, said following the sound economic policies of Ghana, coupled with the impressive performance of ICB, Ghana, a regional office had been established in the country to oversee the

operations of other West African branches. He stressed that ICB believed in entrepreneurship and

partnership and having identified Kumasi as the city that had produced

the most successful entrepreneurs, decided to establish a branch in

Kumasi to partner the people to ensure continuous development of the

city. Oheneba Adusei Poku, the Akyempimhene, who

represented the Asantehene, Otumfuo Osei Tutu II, urged the bank to offer

quality and customer friendly service to the people. He urged management of the bank to liaise with other

banks in the city to invest in development projects, which would offer

employment opportunities to the people in the city. Mrs Dede Kafui Odamten, Sales and Marketing Manager

of ICB, said the bank has a lot of interesting products that qualified

customers could access to improve on their businesses. She said the bank, two months ago, introduced products

which included auto, import, savings and account package "easy"

loans which private companies, sole proprietors and individuals above 18

years qualify to access. Mrs Odamten indicated that the bank has other irresistible

products which customers can source and therefore urged

prospective businesslike peoples and companies to do business with the bank,

adding that the bank is networked and customers can transact business with it

through any of its branches in real time. 17 June 06