President Kufuor asks banks to partner business community

Accra, Dec. 19, GNA - President John Agyekum Kufuor on Tuesday officially launched the Intercontinental Bank, Ghana Limited, telling the management to partner actively with the business community to help to accelerate the development of the private sector and the growth of the national economy.

He said given its origin as a savings and loans institution, which dealt primarily with micro and small businesses and grassroots operators, the expectations were that, the Bank would maintain its links with its former clientele and assist them to take advantage of the new increasing opportunities to grow.

It is a subsidiary of the Intercontinental Bank Plc, Nigeria, ranked among the top four in that country and which, boasts of an 'A' Rating by Fitch.

This brings to four the number of banks now operating in Ghana with their parent banks from the West Africa Sub-Region.

President Kufuor said in addition, the Bank should accept to focus on the promotion of trade and finance between Ghana, Nigeria and the entire Sub-Region.

"It should be at the vanguard of efforts to improve the cumbersome payments system within the Sub-Region to enable us meet some of the competition from other groupings in Europe and Asia, which benefit from the synergies accruing from their harmonious payment systems."

He gave the assurance that the Government would continue to provide the right environment needed for businesses to thrive both in Ghana and West Africa.

On corporate social responsibility, President Kufuor noted that Intercontinental Bank, Nigeria, had built a reputation, through the donation of hostel complexes and academic blocks to 12 Universities in that country, and urged the subsidiary in Ghana to emulate the parent and extend similar services to the education sector.

It must identify strongly with other worthy causes in the society.
Mr Kwadwo Baah-Wiredu, Finance and Economic Planning Minister, said the emergence of banks from the Sub-Region was a clear manifestation of Ghana's belief in using banking as a tool for sub-regional integration.

"This development is the very key to the realization of the facilitation of business across the Sub-Region as well as partly achieving the goals and objectives of NEPAD."

The Finance Minister noted that despite the modest macro-economic gains achieved over the last few years, the cost of doing business in the country was still relatively high, something that posed a direct risk to new business entrants.

He attributed the situation to the relatively weak competition in pricing by the banks and renewed the call on them to continuously reduce their lending rates in line with the downward inflation trend and the consistent decline in the Prime Rate.

Mr Baah-Wiredu said this was necessary because the Government's vision of promoting the private sector as the engine of growth could not be fulfilled without effective functioning of the financial intermediaries.

He said he was hopeful that financial sector reforms introduced by the Government would lead to the realization of the vision of a financial sector that was efficient in the mobilisation and allocation of funds; fully integrated with global financial system and supported by a regulatory system that ensured investors confidence and integrity of financial services.

Dr Paul Acquah, Governor of the Bank of Ghana, said it would continue to periodically publish fees and charges to enable the public to make informed choices and to promote competition in the banking industry.

Dr G. K. Agama, Chairman of the Intercontinental Bank, Ghana, said their entry into the financial landscape was to help to deepen regional integration through strategic business partnerships.

GNA