Accra, Aug. 21,-Speakers at a symposium organised by the Bank of Ghana (BOG) last night were unanimous that the Bank should shift its focus to enhancing the private sector more than supporting the government. Speaking on the theme “the role of the Central Bank in the development of the banking industry in Ghana: past, present and future,” the speakers want the bank to adapt to changes in the global economic trend with tight supervision of the financial system to promote the private sector. The Speakers were Dr H. A. K. Wampah, Head of Research Department of the BOG, Mr Jean Aka, Managing Director of Ecobank who represented the Ghana Association of Bankers and Mr Kwasi Abeasi, Director-General of the Private Enterprise Foundation. The speakers, who took turns to trace the evolution and growth of the Bank in the last 40 years, acknowledged the wide range of financial sector reforms undertaken by the Bank since 1988. But, they said inspite of these reforms, there has not been any significant improvement in the role of banks as financial intermediaries in the Country. The speakers noted that what the Central Bank has failed to do, is mobilising deposits as currency outside the banks continues to indicate a high preference for cash. Money supply held as currency outside the banks at the end of 1996 was about 41 per cent. This, Dr Wampah, in his presentation explained that BOG has introduced various policy measures in response to different situations with varying degree of success. These include prudent and efficient liquidity management to reduce inflationary pressures, boosting up the supervisory capabilities of the Bank and removing obstacles that have hindered the development of secondary market activities. “The BOG has in its 40 years of existence been subject to changes that are linked directly to the economic policies of the government of the day. “It is therefore the time to focus on the important function of the central bank as a catalyst for the growth and smooth functioning of the banking industry,” Dr Wampah said.
