The Bank of Ghana (BoG) has reiterated that it is closely monitoring some developments among banks due to the Domestic Debt Exchange which is increasing liquidity pressures.
This is to help reduce any pressure on their balance sheet and consequently avert the probability of insolvency.
Speaking on behalf of the Governor at the Induction Ceremony of the Ghana Association of Restructuring and Insolvency Advisors, Head of Resolution Office, Elliot Amoako, said macro prudential risk assessment of the banking sector indicates an emergence of spill over from the current economic challenges on the banking industry.
He, however, appealed to the insolvency practitioners to support the regulator in making the financial sector stable.
“Indeed the Bank’s macro prudential risk assessment of the banking sector indicated the emergent of signs of spill overs from the current macro-economic conditions characterised by high inflation and rising interest rates to the banking sector”.
“In particular, pressures on solvency and liquidity of banks have increased and the Bank is closely monitoring these developments”, he added.
He, however, hinted that the regulator is working on regulatory relief measures to moderate the potential impact of this development.
Already, some regulatory relief measures have been lined up for banks to moderate the potential impact of the Domestic Debt Exchange Programme and ensure stability in the sector.
However, Mr. Amoako, said these requires close monitoring to avert insolvency in some institutions.
The Association of Restructuring and Insolvency Advisors is made up of professionals with an interest in restructuring and insolvency formed in 2006 to play a leadership role in corporate restructuring, business recovery and insolvency in Ghana.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
