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Business News of Tuesday, 19 December 2017

Source: Myjoyonline.com

Restore stability, confidence in banking sector – IFS boss charges BoG

The IFS Financial Services Chief Executive Officer has implored the Central Bank to build a more resilient financial system by restoring confidence in the Banking sector.

Kojo Ohene Kyei said public attitudes toward finance are negative because of the challenges the Banking system faced some months past.

At the 10th-anniversary Thanksgiving Service of IFS Financial Services Sunday, he said the sector will be properly positioned if the trust issues are addressed.

The recent takeover of two indigenous banks, UT and Capital Banks by GCB Bank put the spotlight on the sector, with sections of Ghanaians describing it as weak.

Investment packages of the two banks were seen as one of the best in the industry.

But after eight years they were said to be financially weak to operate on their own.

Also, hundreds of Ghanaians lost their life savings in the Brong Ahafo, Volta, Upper East and Upper West regions following a microfinance scam last year.

The development has been blamed on the Bank of Ghana, but it has since taken some steps to sanitise the system.

The IFS Financial Services boss said the growth of the industry has slowed for the past 10 years because of the “heightened geopolitical risk.”

But an effective collaboration between the financial services industry and business community will inject some vibrancy into the sector, Mr Kyei said.

He challenged the Central Bank to use the judiciary in the recovery of bad loans in the banking industry.

Asked the focus of IFS Financial Services for 2018, he said the company will build on its key strength in order to collaborate with other investors to grow the business.

Meanwhile, IFS Financial Services Board member, Samuel Apenteng has encouraged staff of the company to be more focused and humble in the discharge of their responsibilities.

He has asked the workers to ensure that all the branches of IFS Financial Services become profitable in the coming year.