Finance Datasets

This study investigates the impact of mobile money on Ghana’s Payment System. The result shows that there exists long-run stable relationships among the four variables under study. The study suggests that improvement in the mobile money sub sector leads to development of the payment ecosystem, deepening of financial inclusion and promotion of cash-lite economy. The empirical study also shows that factors that promote mobile money usage lead to deepening of the financial system and promote a cash-lite economy. The study therefore emphasizes the need for the Bank of Ghana to continue to deepen the payment system by leveraging on the widespread usage of mobile phones as alternative channels for access to finance to help support improvement in the monetary policy transmission mechanism.[...] Read more

The finance-growth nexus is not foreign to the literature in economics. Schum-peter [1] cited in Levine [2] argued that when the financial system of a country functions properly, it can stimulate economic growth by encouraging innova-tions in technology and by identifying individuals who stand the greatest chance of succeeding at implementing novel products and manufacturing methods. Subsequently, McKinnon [3] and Shaw [4] added that when state officials interfere with a country’s financial structure by way of ceilings on rate of interest, high reserve conditions, and credit control programmes, it impedes the devel-opment of the financial sector, thereby sacrificing higher rates of growth of the economy. For example, La Porta et al. [5] demonstrated that excessive owner-ship of banks by the state lowers bank development while slowing economic growth, mostly in developing countries. Therefore, McKinnon [3] and Shaw [4]emphasized liberalisation of the financial sector as crucial in promoting the growth of the economy.[...] Read more

The Bank of Ghana has repeatedly increased the policy rate since 2012. The policy rate was 21 percent in December 2014, compared to 15 percent in December 2012 (see Figure 5). Interest rates on sovereign debt followed a different pattern with a decrease in 2013 and an increase in 2014 (see Table 5). Increases in 2012 and 2014 are attributable to tight liquidity conditions and a tight monetary policy stance due to firming inflation expectations (BoG, 2014). The high interest rate and the government’s strong demand for liquidity led to a peak in Treasury bill rates in 2012[...] Read more

In the last decade, the mobile sector in Ghana has enabled 12.6 million Ghanaians, about 50% of the population, to access the benefits of mobile communications. This increase in access is bringing wide-ranging benefits to the Ghanaian economy and society:[...] Read more

The payment system landscape witnessed significant changes on accountof the growing role of financial technology firms. The development is attributed to conscious efforts by Government and Bank of Ghana to promote digital payments as alternative to cash; and customers demand for fast, convenient and efficient payments. A survey conducted by the department revealed that there are currently seventy-one (71) FinTechs providing both front and back end services to the banking sector.[...] Read more

The increasing digitisation of global payments required that Ghana aligned its payment system with global developments to facilitate secure deployment and adoption of digital payments. Major developments in the payments ecosystem for the period under review are highlighted in this section.[...] Read more

The Payment ecosystem improved significantly in 2016 on account of various strategic alliances that were established among banks, telecommunication and financial technology firms. Digitization of the payments system landscape accelerated as a result of increased participation of financial technology firms which caused some concerns for improved cybersecurity, data protection, consumer protection and recourse mechanisms.[...] Read more

The Ghanaian economy has been on an upward trajectory over the past three decades, yet a number of challenges bedevil growth, redistribution and sustainability. After 56 years of independence, the need for a formal academic and practitioner forum for engaging minds on the past, present and future state of the economy has been lurking in the background.[...] Read more