Regulations without consultation hurt the industry – Association of Banks boss to BoG

Kwamina Asomaning, President of the Ghana Association of Banks, emphasizes the need for ongoing dialogue. He believes this is essential for effective regulation and policy implementation with the Bank of Ghana.

Asomaning spoke on Joy News’ PM Express Business Edition last Thursday. He is also the Managing Director of Stanbic Bank Ghana. He noted that banks recognize their regulated status but have valuable insights to offer.

"There’s one word that comes to mind—it's dialogue," he said. "We want to have a dialogue with the central bank." He mentioned that sometimes policies are issued without enough consultation.

Banks interact with many customers across various sectors. They hold vast amounts of data and insights that can shape effective monetary policies.

"We accept we are regulated institutions," Asomaning stated. "But we interface with many customers in different sectors." He believes monetary policy can benefit from insights provided by banks.

He pointed out that new policies often lead to unintended consequences. These could be avoided with prior engagement from industry stakeholders.

"It often happens that new policies bring unintended consequences," he explained. "Proper dialogue can help avoid these issues."

Asomaning also highlighted challenges in interpreting new regulations within the banking sector. Financial professionals often struggle to understand newly introduced rules consistently.

"There's always an issue of interpretation," he said. "Bankers scramble to agree on what the intent is." This confusion can lead to inefficiencies in implementation.

He expressed optimism about improving relationships between banks and the central bank. Open communication channels would create a more efficient regulatory environment, he believes.

"We feel that closer dialogue at all levels will lead to a better relationship," Asomaning concluded.