We Aren’t Seeing the Banking Sector’s Impact on Economy- Otumfuo

The King of the Asante Kingdom, Otumfuo Osei Tutu II has postulated that there are uncountable economic benefits the country can derive from the banking sector, which aren’t currently being realized.

According to him, these remain untapped and leave the banking sector inconsequential to the economy.

His Majesty recognizes that the banking business now principally entails short-term investment for profit, at the expense of private businesses which may require long-term investments.

“All the banks are now into buying and selling money. When people save, the banks sell and their profits come when they loan it to the government through Treasury bills. These are short-term investment activities that do not help the economy to grow. We have to look at how to go about this to make the banking sector relevant to the private sector. Else we will engage in buying and selling money for profit. To me yes you making a profit to pay your staff but it has no impact on the economy. Let’s figure out which sectors to expand.”

He observes that banks shy away from investment in agriculture- one of the most viable sectors of the economy- as they require long-term investments which are unattractive and not sustainable.

“You often think agriculture will drain your capital because it demands long-term investment. However, it is the pivotal sector to help grow the economy. How then do we secure funds to undertake such long-term investments? We need to find out. Banking is enticing, the staff will put on their suits and wait for people to bring in their savings and then they invest for profit but in the longer term, how effective will that be in relation to developing the nation? We need to deliberate on it.”

He indicated that banks are expanding across the country and his jurisdiction; however, their impact is not being felt in the concerted effort to facilitate the establishment of businesses and create jobs for the teeming unemployed youth.

“The new branch will attract money but realistically we are not seeing the impact here in terms of development… Ghana must be placed on a foot where she will be able to attract investment. FirstBank Ghana should be able to go out there to be able to attract long-term investment for such projects. If we do that, the economy will be put on a sound footing.”

Otumfuo, however, conceded the banking sector was not entirely at fault saying, “It’s not your fault… I acknowledge the challenges the banking sector is facing. Due to that, the banks are unable to undertake their mandate to help create jobs and employment.”

That notwithstanding, he called for a collaboration between players in the Banking sector, the Bank of Ghana (BoG) and the Finance Minister to tackle the matter.

The Occupant of the Golden Stool said this when the Management of FirstBank Ghana paid a courtesy call to formally inform him about the opening of their third branch at Nhyiaeso in Kumasi in the Ashanti Region on Thursday, September 12, 2024.

“We thank Otumfuo for receiving us on his land to ply our business. We have two branches at Suame and Adum. We told His Majesty the last time that we would be setting up more. Tomorrow we will open our new branch at Nhyiaeso opposite Golden Bean. It’s a nice edifice,” the Managing Director for the bank, Victor Yaw Asante stated.

He further announced plans to open another branch at Tech. He noted that it will be ready in the next three months for commissioning.

He said the Bank is poised at contributing towards Asanteman’s development through banking.

Among the delegation that visited the Manhyia Palace on September 11, 2024, were the Managing Director, Victor Yaw Asante and the Non-Executive Director, Rosie Ebe-Arthur.