Deputy Governor alerts banks against challenges in 1999
********************************************
Accra (Greater Accra), 18 Jan.
Mr Emmanuel O. Kumah, Deputy Governor of the Bank of Ghana (BOG), has said that 1999 would pose great challenges of competition in the banking sector. Banks therefore need to introduce the appropriate innovations to remain competitive, Mr Kumah said at this year's grand award presentation ceremony of the Standard Chartered Bank's "Road to Riches" raffle in Accra over the weekend. The grand award of a Mercedes Benz "C" Class was won by Mr Richard Oppong of Tema. Ms Nancy Anokye-Yeboah won the second prize of two KLM Business Class tickets for Amsterdam and 10 million cedis spending money, while Mr Martin Oteng-Ababio won the third prize of two KLM economy class tickets to the same destination, with six million cedis spending money. Mr Kumah noted that in 1998, the country achieved a "congenial stable macroeconomic environment", saying this was evidenced by an appreciable fall in inflation, a steady drop in interest rates and a stable exchange rate regime. "These successes were achieved through the introduction of appropriate and stringent monetary and fiscal policies, which were painstakingly implemented by the financial institutions, with the banks at the forefront." He said the various promotional packages introduced by the banks in the past year has generated the awareness of savings in the public and helped to mop up excess liquidity in the economy and contributed to effective monetary management. Mr Kumah, however, noted that while those products have helped to reduce excess liquidity, much more money is floating outside the banking system, which demands that banks should introduce more innovations this year to attract more money. He therefore urged the banks to adopt "carefully planned marketing strategies to mobilise more cash deposits, if they are to remain competitive this year." Mr Kumah urged the public to patronise the promotional packages of the banks to enable them to have more cash deposits for loans on a large scale and pledged the central bank's support for the banks, saying, "attempts by banks at mobilisation of cash will be supported and encouraged by the Central Bank." Mr Vishnu Moham, managing director of SCB, said the bank's promotional packages are meant to ensure that the public regains confidence in the banking system and adopt saving habits to give the economy a strong financial base. He said the SCB aims at making banking in Ghana "world class" as the next millennium gets close, adding: "We believe our aim is being achieved through the world class services we provide, making life easier for our customers." The occasion was also used to launch four new products, which would offer customers the chance of winning more prizes, getting big housing loans, discounts on air tickets and access to automated teller machines (ATMs) in four supermarkets in Accra and Kumasi. He said the Home Ownership Mortgage also offers loans to the tune of 100 million cedis for house purchasing, while the Premium Fixed Deposit Account offers customers a fixed interest rate for two years running, "no matter what happens to the market interest rate" and an additional two per cent interest as bonus at the end of the two years. Additionally, customers who save up to five million cedis would be offered 20 per cent discount on all KLM tickets they buy, while those who save between six to 10 million would receive a 30 per cent discount. "KLM has also offered six tickets for New York, London and Hong Kong to be won in a draw in April this year," Mr Chang added.