Number of Banks to increase

Four banks have applied to the Bank of Ghana for approval to begin operations in the country.

According to Accra-based Citi FM, two are new banks applying to operate in the country, while the remaining two are Savings and Loans companies.

If the four banks are approved this will increase the existing commercial banks to 37. This will make Ghana one of the countries in the sub-region with the highest number of banks.

Even though many have called for a merger of banks Banking Consultant Nana Otuo Acheampong believes the increase in commercial banks will encourage competition in the banking sector.

“Competition is part of the free market economy. In fact, competition is an advocate of free market because the more competitive industry is, the more we can see free market,” he said.

He argued that, placing a cap will create a market where a few banks control the industry which may not inure to the benefit of consumers.

“If we allow that, we may have an oligopoly where you get a few institutions controlling the industry,” he said.

But he added that banks must take on big projects in other sectors. He added that he believes there is no single bank in Ghana that can handle such projects.

“My only concern is in terms of the bank’s ability to undertake big-ticket deals like oil, gas and so on. And the banks we have now none of them singularly is big enough to do that so if by consolidating that’s okay but we must not impose restrictions on the industry,” he said.

Number of Banks to increase

Four banks have applied to the Bank of Ghana for approval to begin operations in the country.

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