The Chief Executive Officer (CEO) of Bayport Savings and Loans has commended government’s commitment to fiscal discipline, stressing that it is unlocking liquidity for the private sector and strengthening the performance of financial institutions.
Speaking at the Facts Behind the Figures programme organised by the Ghana Stock Exchange (GSE), the CEO explained that Bayport has benefitted significantly from government’s decision to keep borrowing within sustainable limits. By rejecting excessive bids at Treasury bill auctions and rationalising expenditure, government has allowed more funds to flow into the market, reducing the crowding out of private businesses.
“This discipline has made a lot more funding available, and we have tapped into that. Today, we have more than doubled our deposit base compared to last year,” he revealed.
Significance of Not Crowding Out the Private Sector
For years, banks and other financial institutions have complained that excessive government borrowing pushed interest rates upward and left limited credit for businesses. The turnaround in fiscal management is now reversing this trend, freeing up capital for private sector investment.
The Governor of the Bank of Ghana, Dr. Ernest Addison, reinforced this point in his recent Post-Monetary Policy Committee (MPC) meeting with banks and industry players. He noted that “Business and consumer confidence has strengthened, buoyed by easing inflationary pressures and a stable cedi. These sentiments are critical; they shape investment decisions, credit demand, and the willingness of households and firms to take calculated risks for growth.”
Credit to the private sector has shown positive momentum in recent months as inflation has declined and interest rates gradually eased. With more liquidity available and confidence returning, banks and savings and loans companies are expanding lending to businesses that can drive job creation and exports.
Bayport’s Response
Bayport’s CEO emphasised that the institution was well-positioned to seize these opportunities. “In life, there’s something called opportunity meeting readiness. We were ready. With the government maintaining discipline at the macro level, it has been a huge benefit to us and our customers,” he said.
The increased liquidity has enabled Bayport to cut lending rates by nearly six percent, providing cheaper credit to its core customer base of public sector workers, including teachers, doctors, and civil servants.
Beyond easing loan costs, the CEO noted that exchange rate stability has reduced operational expenses, especially for digital platforms. “With the dollar moving from the 15s to the 10s, our technology costs have come down considerably,” he said.
Wider Impact
Analysts point out that the combination of prudent fiscal management and monetary stability is gradually restoring confidence in Ghana’s economy. For financial institutions, this means less risk, more deposits at cheaper rates, and stronger capacity to support the private sector with affordable credit.
According to the Bayport CEO, this virtuous cycle is critical for inclusive growth. “Government’s actions are not just stabilising the economy but reinforcing the capacity of financial institutions like Bayport to deepen inclusion, provide affordable loans, and attract more deposits. This is why we welcome the macroeconomic turnaround. It is supporting our strong performance and making it possible for us to deliver more value to customers,” he concluded.
