The Bank of Ghana has set up a committee to work with universal banks towards listing on the Ghana Stock Exchange (GSE).
The committee, chaired by the Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, is to develop a practical and credible framework to encourage listing on the local capital market.
It will focus on strengthening transparency, improving corporate governance and deepening the role of long-term domestic capital in the banking sector.
The framework is also expected to recognise the diverse ownership structures within the country’s banking industry, including state-owned, foreign-owned and locally controlled banks.
Pool of funds
At the inaugural meeting of the committee at the Bank Square in Accra yesterday, Dr Asiama said the country was experiencing a growing pool of domestic capital that was strengthening the resilience of the country’s banking sector.
He said that patient funds, such as pension funds and other funds under management, now exceeded GH¢100 billion, making them part of the largest sources of investable capital in the economy.
He said listed banks already had pension funds holding between 15 and 25 per cent of their equity, a sign of rising confidence in the local financial market.
Unlocking bank ownership
Dr Asiama said the trend demonstrated that both domestic and international investors were willing to unlock bank ownership when transparent governance structures and attractive returns were in place.
He said the deepening of domestic capital participation would support long-term stability and sustainable growth within Ghana’s financial system.
He stressed that encouraging more banks to list on the GSE would broaden investment opportunities for Ghanaians, while improving market discipline in the sector.
“When banks open up their ownership through the capital market, it strengthens accountability and builds public trust in the financial system,” Dr Asiama said.
The Governor stressed the need for a flexible approach that recognised diverse ownership structures — foreign, state-led, and locally controlled — while maintaining high governance standards.
He urged members to work rigorously and responsibly to develop a practical, credible framework grounded in Ghana’s realities.
Channelling local funds
The Managing Director of the GSE, Abena Amoah, said strong collaboration among the leadership of all segments of the financial services sector was critical to deepening the country’s capital market and mobilising domestic savings to support economic growth.
She stressed that channelling local funds into foreign economies would not drive Ghana’s development.
“Externalising funds to develop other countries is not the way that our country will grow,” she said.
Ms Amoah, an astute investment banker who had structured many blue-chip companies onto the stock market, said increasing Ghanaian ownership in critical infrastructure and key sectors must be a deliberate national priority, as ownership directly influenced long-term economic resilience.
The committee, which is made up of steering and technical committees, has a six-month timeline to develop a comprehensive framework to guide the orderly listing of banks.
It is also expected to leverage not only the equities market but also fixed income instruments such as corporate bonds, green bonds, social bonds and commercial paper.
While the steering committee will provide broad policy direction, the technical committee will identify bottlenecks and risks to ensure the successful implementation of the framework.
The other membersof the committee include Ms Amoah; the Second Deputy Governor of the BoG, Matilda Asante-Asiedu; the Treasurer of the Ghana Securities Industry Association, Kofi Koduah-Sarpong; an official of the Ghana Securities Industry Association, Kwabena Boamah, and the Chief Executive Officer of the Ghana Association of Bankers (GAB), John Awuah.
The rest are Jacob Aidoo from the Securities and Exchange Commission, and Louis Kwame Amo of the Ministry of Finance.
Source:
www.graphic.com.gh