Mr. Kofi Adomako, the Managing Director of GCB Bank PLC (GCB), has stated that the establishment of the Development Bank Ghana (DBG) is timely for banks and also for the growth of Small and Medium-sized Enterprises (SMEs) in the country.
According to the Managing Director of GCB Bank PLC, DBG would not be a commercial bank or behave like one; rather, it would act as a wholesale bank that would on-lend to commercial banks like many other development banks.
“I think the bank has come at the right time and it is going to be a different bank from what we have seen in the past. It is true we have had other banks which tried to play the role of development banks but DBG comes with a big difference. The difference DBG brings is its independence, governance, and the way it was set up.”Mr. Kofi Adomako
Mr. Kofi Adomako noted that the development partners that DBG brought to the market are immense.
“DBG is not going to compete with commercial banks but it is going to bring out the value in commercial banks; in the sense that, it is going to on-lend over much longer terms, in both foreign currency and Cedis, which commercial banks have lacked for a long time and has stifled the growth of SMEs.”Mr. Kofi Adomako
Mr. Adomako disclosed that GCB Bank in collaborating with DBG is an opportunity to further take advantage of GCB’s wide branch network to reach out to SMEs.
“The reach we bring to this collaboration is immense. Also, GCB Bank has the expertise and experience in the SME sector and has the largest SME book in this country.”Mr. Kofi Adomako
According to Mr. Adomako, it is, therefore, an opportunity to work with DBG to deepen that arrangement in terms of skills, scope, and in terms of value, it brings through technical expertise, managerial expertise, and capacity building.
The MD iterated that the collaboration with DBG is expected to deliver several benefits, all aimed at improving SMEs.
“It will help share risk by channeling funds through it to GCB and to the huge SME clientele of the commercial bank. It will also offer capacity-building and technical support opportunities. Ultimately it will help GCB’s SME clients benefit from the support which will position them favorably to compete on the African continent on the back of the African Continental Free Trade Area (AfCFTA) and also via other trade arrangements Ghana is a signatory to.”Mr. Kofi Adomako
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