Chief Executive Officer (CEO) of FBNBank, Victor Yaw Asante, has urged the Bank of Ghana (BoG) to undertake a comprehensive review of certain trade and documentation regulations.

As the financial sector continues to evolve rapidly, Mr Asante emphasized the need for these rules to be adapted to stay relevant in the dynamic financial landscape.

Identifying particular regulations requiring reconsideration, he specifically pointed to the trade threshold.

He stressed that certain rules, including this one, were established many years ago and should be recalibrated to align with present-day demands and trends.

“With the trade threshold, for example, you can’t transfer more than US$50,000 without full documentation and so on. Things have changed. I think the central bank has squeezed us a little bit. What it needs to do is to re-examine the rules around trade and trade documentation, because it is becoming a big issue. Some of the rules were set many years ago and we think it is time for the threshold to be re-examined, and that will be key,” he suggested.

Yaw Asante

He made these remarks in response to a question from B&FT about the reforms he envisions for the sector in 2024, during the bank's annual health workshop in Accra.

He additionally pointed out that alterations to the primary reserve rules, allowing a banking institution to hold primary reserve in the currency it possesses, carry implications for the sector.

Mr. Asante noted that while the central bank is implementing some strategies to put people in check, those same changes are forcing others to try things outside the banking system.

“The central bank is doing very well to try and put a firm grip on how people misbehave, but sometimes in doing that people are also driven underground. So, rather, people try to do things outside the banking system, and that is not what we want,” he added.

While calling for reforms, he commended the BoG – regulator of the financial sector – for the good work done so far and the constant dialogue with regulated institutions, adding that: “We will continue working with the central bank and other relevant bodies to have a better 2024”.

Additionally, he stated that despite challenges faced by the financial sector in 2023 it remains largely sound – with most banks recording growth.

“For starters, government has done a pretty good job of managing the challenges, although other issues are still pending. I think the big one was to try and get the IMF emergency facility. Once those things were managed, it meant that the macros became slightly more predictable; and therefore, we were able to return to normal business,” he explained.

Mr. Asante concluded that the sector’s prospects for 2024 are better than in the previous year: “I expect to see a return to growth for most businesses in 2024, and banks in particular – a bit more confidence in our ability to lend and support our customers”.

Away from the central bank, Mr. Asante advocated a paradigm-shift in the economy’s structure, emphasising the importance of prioritising domestic production over imports. This, he explained, is very key to strengthening the cedi and creating job opportunities for the country’s youth.