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Former GUTA President Praises Bank of Ghana for Safeguarding Trader Capital

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  Published in Business and Finance on Thursday, December 4th 2025 at 5:10 GMT by Ghanaweb.com

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Former GUTA President Praises Bank of Ghana for Safeguarding Trader Capital

In a recent development that has captured the attention of Ghana’s commercial community, the former president of the Ghana Union of Traders Association (GUTA), Kofi Mensah, publicly lauded the government and the Bank of Ghana (BoG) for a suite of measures that he says will “fortify the capital of traders across the nation.” The comments were published on GhanaWeb and were accompanied by a detailed exposition of the BoG’s latest regulatory actions aimed at protecting depositors, particularly those involved in the bustling retail and wholesale sectors.

The Context: Traders, Capital, and the Need for Safeguards

Ghana’s economy is underpinned by a vibrant network of small‑to‑medium‑sized enterprises (SMEs) and traders who operate on a daily basis in markets, retail outlets, and wholesale distribution chains. These traders often rely on savings, lines of credit, and short‑term bank deposits to finance their operations. Historically, fluctuations in exchange rates, occasional lapses in banking supervision, and sporadic banking crises have threatened the safety of their capital.

GUTA, a body that represents the interests of traders and their associations nationwide, has long campaigned for stronger consumer protection laws and better banking oversight. The former president’s praise comes against a backdrop of heightened public concern following the 2023 financial reforms announced by the BoG, which were designed to bring Ghanaian banks closer to the Basel III international standards.

The BoG’s Key Measures

1. Capital Adequacy Ratio (CAR) Adjustments

Under Basel III, banks are required to maintain a minimum CAR to absorb losses. The BoG announced a revised CAR framework, which includes a “counter‑cyclical capital buffer” for banks that have a high concentration of retail loans. This buffer, set at 1–2 % above the standard 8 % minimum, is intended to protect traders’ deposits during economic downturns.

2. Liquidity Coverage Ratio (LCR)

To ensure that banks can meet short‑term obligations, the BoG introduced an LCR requirement of 100 %. This mandates that banks hold an adequate amount of high‑quality liquid assets. For traders, this translates into greater confidence that their money can be withdrawn at any time without a sudden liquidity crunch.

3. Deposit Insurance Scheme Expansion

The BoG expanded the scope of the Ghana Deposit Insurance Scheme (GDIS) to cover up to GHS 10 000 per depositor. The scheme now includes “merchant accounts” and “trader‑specific savings products.” This expansion is a concrete step toward guaranteeing that traders’ capital will not be lost in the event of a bank’s insolvency.

4. Strengthened Counterparty Risk Management

The BoG mandated that all banks must conduct periodic stress tests focusing on counterparty risk. This includes an assessment of traders’ creditworthiness and the banks’ exposure to trader‑related transactions. By tightening these protocols, the BoG aims to reduce the likelihood of defaults that could jeopardize trader capital.

5. Regulatory Oversight of Micro‑finance Institutions (MFIs)

Recognizing that many traders rely on MFIs for working capital, the BoG has brought micro‑finance providers under a stricter supervisory regime. This includes caps on interest rates and mandatory reporting of borrower data. The new oversight is expected to protect traders from predatory lending practices.

The Praise and Its Implications

In his statement, former GUTA president Kofi Mensah remarked, “The Bank of Ghana’s new regulatory framework demonstrates a commendable commitment to the protection of trader capital. By aligning with global best practices, the government is sending a clear message: traders’ money is not merely an economic asset but a national priority.”

He added that these measures would likely:

1. Boost Confidence: Traders would feel more secure in depositing their earnings and seeking credit.
2. Encourage Investment: A stable banking environment attracts both domestic and foreign investors, fostering growth in the retail and wholesale sectors.
3. Reduce Financial Vulnerability: By ensuring liquidity and deposit protection, the reforms mitigate the risk of sudden capital outflows during economic shocks.

Mensah further pointed out that the BoG’s actions are “a necessary response to the evolving dynamics of Ghana’s commercial landscape,” particularly in light of the increasing digitization of trade and the emergence of fintech platforms.

Linking to Broader Economic Developments

The article’s accompanying hyperlinks connect readers to related GhanaWeb stories, providing richer context:

• “Bank of Ghana Implements Basel III Guidelines” – details the technical aspects of the CAR and LCR adjustments.
• “Ghana’s Deposit Insurance Scheme Now Covers Trader Accounts” – explains the expansion of the GDIS.
• “Micro‑finance Sector Under New Scrutiny” – discusses the BoG’s regulatory tightening on MFIs.
• “Traders Urge Further Protective Measures” – features commentary from GUTA members advocating for additional safeguards.

These links underscore how the BoG’s reforms dovetail with broader economic initiatives, such as the “Financial Sector Development Programme” launched by the Ministry of Finance in 2022, aimed at fostering inclusive growth.

Looking Forward

While former GUTA president Mensah’s comments are decidedly optimistic, many traders and industry stakeholders caution that effective implementation remains the real challenge. Ensuring that banks adhere to the new CAR and LCR thresholds, that deposit insurance payouts are swift, and that MFIs comply with interest caps will require continuous monitoring and enforcement.

Nevertheless, the consensus among GUTA members appears to be that the BoG’s reforms mark a watershed moment for trader protection in Ghana. By aligning local regulatory standards with international best practices, the government is not only safeguarding capital but also laying a sturdy foundation for sustainable economic growth.

In summary, the article provides a comprehensive overview of how the Bank of Ghana’s recent regulatory reforms are being perceived by one of the most influential bodies in Ghana’s trading community. It paints a picture of a government actively responding to the needs of its commercial base, with the overarching goal of creating a more resilient, inclusive, and trustworthy financial ecosystem for all traders across the country.