The Bank of Ghana (BoG) is preparing to divest its remaining shareholdings in the Agricultural Development Bank (ADB) and the National Investment Bank (NIB), in a move aimed at reinforcing the central bank’s position as an independent regulator of Ghana’s financial sector.
Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, made this known after the latest meeting of the Monetary Policy Committee (MPC), explaining that the central bank’s continued ownership of shares in banks it regulates could create perceptions of a conflict of interest.
According to him, the BoG Board has approved the sale of the central bank’s remaining 13 percent stake in ADB, with the divestment expected to be completed later this year. The central bank also plans to dispose of its one percent interest in NIB.
“Bank of Ghana certainly will get out of the space. We are the regulator and we’ll continue to be the regulator in that area,” Dr. Asiama stated.
The Governor said the decision forms part of broader efforts to ensure a clear separation between the BoG’s ownership interests and its supervisory responsibilities. He explained that the central bank’s focus should remain on regulating and supervising financial institutions to promote stability, protect depositors and maintain confidence in the financial system.
Global Shocks Affect Business and Consumer Confidence
On the latest business and consumer confidence survey, Dr. Asiama disclosed that confidence had recorded a slight decline, although he described the change as marginal.
He linked the development to ongoing global economic uncertainty and geopolitical shocks, which continue to affect businesses and consumers in different economies, including Ghana.
“Remember the elephant in the room — the global financial shocks that we’re contending with. Yes, it is being felt by local consumers and businesses,” he said.
Despite the slight dip, the BoG Governor maintained that overall business and consumer confidence remains broadly stable. He said the latest movement should be viewed within the context of global economic pressures rather than as an indication of a significant deterioration in domestic economic conditions.
Dr. Asiama further indicated that the Bank of Ghana would continue to monitor developments in the global and domestic economies and take appropriate measures to safeguard financial stability while strengthening its regulatory oversight of the banking sector.
Story by Ama Frimpomaa