THE IMPACT OF COMMERCIAL BANK ON BUSINESS AND SUSTAINABILITY IN GHANA
Commercial Banks in Ghana including Rural Bank, Urban Bank and other non commercial banks plays a major role in the Ghanaian economy and business sustainability especially among the Small and Medium Enterprise by providing credits and loans to qualified business and individual including farmers and fishermen, they have empowered small enterprise especially those who are engage in small businesses even at their own home. The Agricultural Development Bank (ADB) of Ghana has been responsible for at least 35% of the total bank industry financing in agriculture and related business as of 2010 this has been is a commercial bank owned by the government and they have been serving the people of Ghana since 1965.
ADB has also been involved in various services and loans, international, corporate and personal banking and money transfer all over the world with the partnership of Western Union money transfer. They have 50 banks located in most key areas in Ghana, 4 farm loans and 64 service centers to serve their customers. The Ecobank in Ghana remains to be a competitive bank to deliver quiet remarkable services including 24/7 secured banking, cash management solution for other banks and financial institutions and supply chain management all over Africa that gives benefit to supplier and distributor to eliminate various types of risk and liquidity from many businesses including start-ups and foreign businesses to invest in their country.
The Standard Chartered Bank in Ghana has been consistently a part of the top commercial bank in the country. They have 21 branches that employed more than 800 staffs to serve more than 160,000 clients in Ghana they have largely contributed to the economic impact of public, private and individual institutions by providing them the basic offshore and onshore savings and financing that reaches up to 0 million US dollars within the year of 2009. They have also released .2 million US dollars in financing small and medium enterprise in 2009 and probably expecting more in years to come. http://sustainability.standardchartered.com/contributing-to-the-real-economy/feature-our-social-and-economic-impact-in-ghana.html
The Standard Chartered Bank in Ghana also helped the Ghanaian economy by providing globalized business investment and international trading system, the employment training system they have provided is also considered world class that’s why they remains to be internationally competitive in global participation. They have supported at least 156,000 jobs that employed 1.5 percent of Ghanaian workforce. They also supported corporate governance to ensure that their taxes and their images can be positive in the mind of their customers and the government.
Most commercial banks in Accra, Ghana has been engage in many financing activities and services that includes cash management, credit related securities, internet banking, fast cash and other immediate banking sustainability and loan to provide to their customers. Many individual and businesses has found a new ways to expand their activities in such loans that has been provided by their selected commercial banks. Loans that have been provided by commercial banks are mostly secured loans and mortgage loans that is payable depending on banks rules and regulation. Mostly small business enterprise may need collateral to avail such loans.
There are also times that commercial banks and other financing institutions such as micro-financing and credit cooperatives in Ghana has been affected by many negative determinants including environmental and political issues, interest rates and exchange rate fluctuation that even contributed to the downfall of Gross Domestic Product (GDP) But usually within a year most commercial banks experience good business practices and governance. In the overall participations of most banks they have helped the country in business, environmental participation and economic recovery.
Somehow they may say that the country still remains in International Financial and Technical Dependency with the assistance of World Bank (WB), International Monetary Fund (IMF) and United Kingdom Government, their government still believed that the local and international banking sectors will continue to increase their share in helping their economy and their government has largely acknowledge some 27 banks who have contributed to their economy as of 2010 that includes the following banks listed herein; http://en.wikipedia.org/wiki/List_of_banks_in_Ghana
As of today the impact of those commercial banking to business and sustainability is expected to bring significant changes that they have already done over the past years, promoting various services and trends. The government has also implemented various strategic plans to promote and maintain the integration of financial institutions for more successful financial approach to meet the demand of both businesses from private to public to small and medium enterprise development needs in the years to come.
Credit:ivythesis.typepad.com
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