The Bank of Ghana (BoG) has assured all the 26 banking institutions that government will not extend the Fiscal Stabilisation Levy after its 2010 stipulated time.
The Fiscal Stabilisation Levy is a five percent specific levy to be paid by large commercial entities including banks, non-bank financial institutions, Insurance companies, Mining companies, communication companies and the breweries.
The levy, which was passed by parliament two months ago, is aimed at raising revenue to bridge the current fiscal gap of about GH¢209 million and also to provide for other related matters.
Mr. Millison Narh, Deputy Governor of the BoG, making a presentation in Accra said: “The Fiscal Stabilisation Levy is expected to end in 2010 to enable the banks to operate more freely, and there will not be an extension of its implementation.”
He observed that the country’s financial landscape has changed significantly following the enactment of comprehensive legislations necessary for a modern banking and financial services industry that is strong enough to support a growing economy.
“The BoG has put in place a strong legal and regulatory framework designed to support a safe and efficient payment system, which is critical for the effective functioning of the economy.
“The combination of technological advancement, telecommunications and banking services hold the potential to transform the payment and settlement systems as well as provide a strong pillar of growth in the economy.”
Mr. Narh urged players in the financial sector to embrace and harness the capabilities of Information Communication Technology (ICT) to promote strategic decision-making, enhance risk management systems and efficient customer-relationships.
“While we leverage on all the benefits of ICT growth, we are mindful of the fact that the financial sector and the underpinning payment and settlement infrastructure is the nerve-centre of the economic system, and there is need to safeguard its soundness to ensure sustained growth in a stable macroeconomic environment.
“The BoG will continue to exercise firm oversight of the payment system to ensure a sound financial system.
“Currently, the banking environment is highly competitive but not distinctively differentiated by products and services. The ability of any bank to deliver diverse products and services in the most efficient and effective manner will gain the needed edge to distinguish itself from other competitors by its performance and relevance within the industry,” he remarked.
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