Policy directives shouldn’t leave banks scrambling for clarity – GAB boss to BoG

Kwamina Asomaning is the President of the Ghana Association of Banks (GAB). He has called for more dialogue between banks and the Bank of Ghana (BoG). This is to prevent policy missteps.

Asomaning spoke on Joy News’ PM Express Business Edition. He noted that some directives were issued without enough consultation.

He emphasized the importance of dialogue with the central bank. "Our experience shows that policies are sometimes made without adequate consultation," he said.

While recognizing BoG’s authority, he highlighted banks' diverse customer interactions. Banks have valuable insights that could improve monetary policy.

"We accept regulation but interact with many customers across sectors," he stated. "We have a wealth of data and relationships."

Asomaning pointed out issues with new policies lacking industry input. "Unintended consequences often arise when new policies are released," he explained.

He believes these consequences can be avoided through proper dialogue. He also mentioned challenges in interpreting new regulations.

"There’s always an issue of interpretation," he said. "Bankers often struggle to understand what the intent is."

Asomaning advocates for continuous engagement between banks and the central bank. This will create a more effective regulatory environment.

"If we have closer dialogue at all levels, it will improve our relationship," he concluded.