Ghana’s banking sector may be showing signs of recovery, but Chief Executive Officer of the Ghana Association of Banks, John Awuah, says the industry is far from declaring total victory.
He cautioned against the impression that the sector has completely emerged from recent economic turbulence.
Responding to suggestions that banks may have “turned the corner” following improved first-quarter performances and stronger numbers compared to last year, he insisted the recovery remains a work in progress.
“It’s a process, you can never say that you’ve arrived,” he said.
According to him, the banking sector has nevertheless demonstrated remarkable resilience despite the shocks it has endured in recent years.
“Of course, we’ve seen significant progress,” he stated.
Mr Awuah said the performance of banks through difficult economic conditions has proven the strength and durability of the financial system.
“We have a banking system that is proving that it is resilient,” he noted.
He added that banks have shown they can survive and adapt even under severe pressure.
“They can withstand some of the shocks that we’ve gone through in the last couple of years,” he stressed.
The comments come at a time when confidence is gradually returning to the financial sector following a period marked by economic instability, high inflation, currency pressures and the domestic debt exchange programme.
Mr Awuah said improving macroeconomic conditions are helping to restore stability and confidence within the banking industry.
“With the fact that present economic fundamentals are looking in the right direction, I would say the banks are safely anchored,” he explained.
He also expressed optimism about the role banks are expected to play in Ghana’s economic recovery and growth.
According to him, the industry is now positioning itself to finance viable businesses and support productive sectors of the economy.
“And that we are poised for growth to support the economy and all the bankable projects that are available to us,” he said.