Re-capitalisation is good for the economy – Asiedu-Mante

10.05.2008 LISTEN

The Chairman of the Board of Directors of Stanbic Bank, Mr Emmanuel Asiedu-Mante, has said re-capitalisation requirements instituted by Bank of Ghana (BOG) were appropriate and good for the economy.

He said without re-capitalisation most of the banks could collapse when exploitation of the country's oil resources commences in 2009.

Mr Asiedu-Mante was interacting with journalists after inaugurating a branch of the bank at Tarkwa.

He explained that there would be pressure for loans on banks by engineers, transport companies, entrepreneurs for storage facilities, construction of refineries and other subsidiary companies that would be established in the country.

“Any bank that is not adequately prepared financially to meet the capital intensive demands could fold up,” he said.

Mr Asiedu-Mante said every successful banker must know the needs of clients and package products that would satisfy them while ensuring efficiency.

He said for the expansion of banks throughout the country, government must ensure the provision of good road network, schools, health facilities and social amenities that would attract them.

Mr Asiedu-Mante said banks render service by managing the funds of its customers and would continue to operate in areas where returns were encouraging.

He noted that inspite of the establishment of 24 banks with universal licences, 126 rural banks, several savings and loans companies, credit unions, susu companies and mutual funds a lot of money still existed outside the formal sector.

Source: GNA

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