By July 1989, the work of the 10-man committee tasked by the PNDC government to establish the Ghana Stock Exchange had borne fruit. About 16 months thereafter, trading commenced. Three decades later, Ghana’s public securities market has mixed stories to report. As critics like to point out, having fewer than 100 listed equities is hardly […]
Context It’s a known fact, even in regulatory circles, that high operating expenses are a major issue that adversely impacts loan asset pricing. Studies have shown, especially in Ghana, that high base rates are correlated with high operating costs and low non-interest revenue. Although the high operating expenses (expressed as cost/income ratio) are characteristically high
Interestingly, 53.6% of Survey Respondents Think their Bank is Responsive to their Needs Read More »
Currently, the world is dealing with the adverse impact of the Russia-Ukraine war on markets; travel, leisure, hospitality, food and other connected sectors. Markets such as downstream oil and gas may experience short-term turbulence but will rebound quickly due to demand inelasticity. Others, such as pharmaceuticals, sanitary products and medical consumables, may experience a short-term
Why E-commerce, Logistics and Payments May be the New Growth Drivers for Banks Read More »
Despite the improving macroeconomic environment, the general posture towards enterprise credit continues to remain conservative, for better or for worse. More than that, the structure of credit remains unchanged for the most part. According to data from the Bank of Ghana, commerce and finance sectors continue to receive a significant proportion of private sector credit,
The Rise of Music Streaming and Ride-hailing Raises Questions about Traditional Finance Read More »
The enactment Non-bank Financial Institution Act, 2008, Act 774 into law, was an auspicious period in Ghana’s economic history, which was characterized by a medley of policy packages leaning towards an expansionary tilt. The Act, providing a clear framework for prudential supervision and market discipline, proved insufficient years later, as it served as a minimum
Open Letter to the Governor: Review the Business Rules and Sanctions for MFIs Read More »
The adoption of digital business models, along with digital payments, accelerated significantly during the COVID-19 outbreak in Q1 2020. As of January 2020, the number of active electronic money customers in Ghana was 14,130,350, with total transactions valued at GH¢30.2 billion (data source: Fintech and Innovation Unit, Bank of Ghana). By January 2023, the number
Advocacy: Issue Payment Service Procurement Guidelines for MFIs Read More »
SMEs: What Really Is the Problem? To properly define the problem, three research questions are unavoidable: (1) What are the basic, unique characteristics of an SME that differentiate it from a large organization in our business environment? (2) What are the respective weights of those differentiating elements in terms of their contribution to business risks?
SME Lending is Highly Correlated with High NPLs,. What Really is the Problem? Read More »
Following the revocation of licenses of 53 fund managers by the Securities and Exchange Commission in 2017, the sector has seen some changes that suggest efforts at confidence-building are beginning to yield results. The direction and speed of reforms are encouraging. Several initiatives have been introduced, for instance, the Corporate Governance Code, Conduct of Business
Consolidate Regulatory Reforms in the Securities Sector, Yieldera tells Government Read More »