In July 1957, Alfred Engleston was appointed as the first Governor of the Bank of Ghana. As expected, the lender of Ghana took over the management of the money and in July 1958 it released its first National Currency – the Cedi – to displace the old West African currency notes. By the first 1966,it has clear the national country was experiencing economic difficulties that led to change of government. 1983 saw an effort to reverse the situation, the national government, with the assistance and guidance of the International Monetary Fund (IMF), introduced the Economic Recovery Programme (ERP). Provision is made for the licensing of non-banking finance institutions under the Financial Institutions (Non-Banking) Law 1993 (P.N.D.C.L.

This legislation makes provision for the licensing of non-banking financial institutions wanting to operate as, inter alia, discount companies, fund homes, building societies, or leasing and hire-purchase companies. Such establishments now are the Home Finance Corporation which provides fund for the acquisition of homes and the town Savings and Loans Limited which grants various forms of financial assistance and accommodation to small size business enterprises.

By the end of 1990, banks could actually meet the new capital adequacy requirements. In addition, the federal government announced the establishment of the First Finance Company in 1991 to help distressed but potentially viable companies to recapitalize. The business was established as part of the financial sector adjustment program in response to requests for easier access to credit for companies strike by ERP insurance policies.

  1. Ability to easily service personal debt
  2. A debit balance in the Allowance for Doubtful Accounts
  3. Buoyant aftermarket
  4. Joint resources – resources that are owned in the name of both spouses
  5. Invest in a REIT
  6. Increase in individual capita (average education levels over the adult people)
  7. Accounts receivable $15 million
  8. Autonomy and entrepreneurship – fostering advancement and nurturing “champions”

The company was a joint venture between the Bank or investment company of Ghana and the Social Security and National Insurance Trust. Despite offering some of the highest lending rates in West Africa, Ghana’s banks appreciated increased business in the first 1990s because of high deposit rates. THE LENDER of Ghana elevated its rediscount rate in levels to around 35 percent by mid-1991, generating money market and commercial bank or investment company rates of interest well above the pace of inflation, thus making real interest rates substantially positive.

As inflation decelerated over the year, the rediscount rate was lowered in stages to 20 percent, getting lending rates down accordingly. At the same time, more money shifted into the banking system in 1991 than in 1990; time and cost savings debris grew by 45 percent to ¢94.6 billion and demand deposits rose to ¢118.7 billion.

Loans also increased, with banks’ claims on the private sector up by 24.1 percent, to ¢117.4 billion. Banks’ promises on the central federal government continued to shrink in 1991, falling to a mere ¢860 million from ¢2.95 billion in 1990, a representation of continued budget surpluses. Claims on nonfinancial general public enterprises rose by 12.6 percent to ¢27.1 billion.