Ernest Addison: Banking reform and the necessity of taking unpopular decisions to restore stability

Keynote address by Dr Ernest Addison, Governor of the Bank of Ghana, at the Ghana Association of Bankers 17th Annual Working Luncheon, Accra, 13 September 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Salutations

1. A very good afternoon to you all and let me extend my warm greetings and welcome you to the 19th Annual working luncheon of the Ghana Association of Bankers (GAB). It is indeed a great pleasure to be invited to address this working luncheon of the Ghana Association of Bankers, bringing together Chief Executives of Banks in Ghana.

2. To begin, allow me to highlight the critical role of the banking sector to the national development agenda. The growth experience of the banking industry is necessarily intertwined with that of the economy as a whole. And the industry has necessarily been central to economic policy and structural reforms because a sound and efficient banking system is indispensable for financial stability and indispensable for a healthy and robust economy.

3. Mr. Chairman, we have gathered here at a time of completion of actions to reform our financial sector and a time when a lot of gains have been made in country's monetary and financial stability, and confidence is being restored. These gains should begin to translate into lower interest rates that Ghana pays for issuing debt, as well as lead to further anchoring of inflation expectations at the low and stable levels and financial stability.