Collins Sefa The Bank of Ghana (BoG) has renewed calls for more banks to list on the Ghana Stock Exchange (GSE), saying deeper equity markets are essential to absorbing the country’s fast-growing pension assets and strengthening financial stability after years of economic stress.
Speaking at the listing of First Atlantic Bank Plc (FAB) on the GSE, BoG Governor Dr. Johnson Pandit Asiama said bank listings provide a viable investment outlet for long-term domestic savings, which are currently concentrated in government securities.
Ghana’s pension industry is projected to exceed GH¢100 billion in assets this year, driven by mandatory contributions and steady formal-sector growth. However, limited local investment options have left pension portfolios heavily skewed toward sovereign debt.
“As a result, pension portfolios are heavily concentrated in government securities,” Dr. Asiama said, noting that while this has played a stabilising role in the past, it limits long-term returns and increases system-wide risk.
Bank Listings as a Diversification Tool
According to the central bank Governor, listed banks offer regulated, transparent and cash-generating assets that can help diversify pension investments without increasing exposure to foreign markets.
First Atlantic Bank’s listing marks the first initial public offering on the Accra bourse since 2018, ending a prolonged period of inactivity in new equity issuances. The IPO was oversubscribed, attracting strong interest from both institutional and retail investors — a sign of renewed confidence in the banking sector.
FAB, founded in the mid-1990s and licensed as a universal bank in 2014, controls about 3.5 percent of industry assets and over 4 percent of deposits, making it a mid-tier player in Ghana’s competitive banking landscape.
By listing, the bank has strengthened its capital base, broadened its ownership structure and subjected itself to higher levels of disclosure and market scrutiny.
“When a bank lists on the stock market, it does not merely change its share register,” Dr. Asiama said. “Ownership broadens, accountability deepens, and transparency becomes continuous rather than episodic.”
Lessons from the Debt Crisis
Dr. Asiama framed the push for bank listings within Ghana’s recovery from the 2022 debt crisis, when inflation peaked at 54.1 percent, the cedi lost more than half its value and foreign reserves fell to historic lows.
The Domestic Debt Exchange Programme (DDEP) strained banks, pension funds and capital markets, exposing structural weaknesses in the financial system.
Although macroeconomic conditions have improved — with inflation falling to 6.3 percent in November 2025, the cedi appreciating by over 24 percent this year and reserves rising to about US$11.4 billion — the Governor stressed that recovery must now give way to reform.
Reducing Foreign Ownership Concentration
Another concern raised by the BoG is ownership concentration in the banking sector. Foreign-owned banks currently control about 60 percent of industry assets, a situation that can intensify foreign exchange pressures during periods of economic stress.
“Bank listings introduce a different dynamic,” Dr. Asiama said. “By broadening ownership to include pension funds, insurance companies, asset managers and ordinary Ghanaians, profits circulate longer within the domestic economy instead of exiting all at once.”
He concluded that encouraging more bank listings will deepen Ghana’s capital markets, improve domestic capital retention and enhance the resilience of the financial system.
