Dziobek, C. and C. Pazarbašioğlu, 1997, “Lessons from Systemic Bank Restructuring: A Survey of 24 Countries,” IMF Working Paper No. 161 (Washington: International Monetary Fund).
Kapur, I., M. Hadjimichael, P. Hilbers, J. Schiff, and P. Szymczac, 1991, “Ghana: Adjustment and Growth,” 1983–91, IMF Occasional Paper No. 81 (Washington: International Monetary Fund).
World Bank, 1994, “Ghana: Financial Sector Review: Bringing Savers and Investors Together,” Report No. 13423 - GH (Washington: World Bank).
Prepared by Luisa Zanforlin. This chapter benefited from data collected by an MAE mission consisting of Mr. Ugolini (head), Mr. McConnell, and Ms. Schumacher (consultants).
As part of the bank restructuring initiative, the Bank of Ghana acquired shares in commercial banks, an operation conceived as a temporary step, but which has remained to this day. This has given rise to a potential conflict of interest. However, the BoG expects to sell all its shares in commercial banks shortly, as part of the financial sector divestiture program.
The ownership shares in GIB are as follows: Bank of Ghana, 51 percent; the social security national insurance trust (SSNIT), 15 percent; Ghana Commercial Bank, 20 percent; ADB, 9 percent; and State Insurance Corporation (SIC), 5 percent.
This is a partially funded, defined benefit scheme and is the largest financial institution in the country.
Excluding foreign currency deposits. The ratio including foreign currency deposits was 23.5 percent in 1997, but a comparable figure is not available for 1980.
The apparently slow progress toward financial deepening has to be assessed in light of the economic dislocations of the 1970s and 1980s in Ghana. Also, the financial deepening indicators discussed in this charpter do not necessarily capture all facets of financial sector development.
Fifty-two percent of deposits and assets, if one includes banks in which the government has minority shareholding.
Another reason is that the government is still placing significant amounts of government securities to finance its deficit.
Interest rates on foreign currency deposits range around 2-3 percent.
Calculated as the ratio of the difference between assets and liabilities denominated in foreign currency to shareholders’ funds.
The nonperforming loans removed at the time of the restructuring represented about 41 percent of total credit extended to state owned enterprises and private firms. See World Bank (1994).
The calculation of the minimum capital requirement does not follow the Basle Committee recommendations, although in practice it has resulted in levels of minimum capital in excess of the Basle Committee’s 8 percent risk-weighted assets-to-capital ratio.