In a study led by Dr. Sajid Mukhtar Chaudhry, Ghana’s financial sector has been dominated by ten big banks. Based on their performance, these banks are too profitable (in terms of what is socially optimal) with their revenue generation much higher than other industries. Unfortunately, these banks are making profit at the expense of the public but do not contribute substantially to Ghana’s public finances. The situation calls for urgent steps to be taken for the government to benefit meaningfully from the financial sector.
The study also investigated why the National Fiscal Stabilisation Levy (NFSL) should remain in place for banks in Ghana and gauged its impact on bank returns and profits. The study proposed a bank tax of 1% of total liabilities net of equity and insured deposits or 5% of profit before tax. The research has significant implications for Ghana as well as other emerging economies with similar economic characteristics.
Dr Sajid Mukhtar Chaudhry, a senior lecturer at the Finance, Economics and Entrepreneurship Department, Aston University, Birmingham UK., will be the lead speaker.The Roundtable is intended to deliberate on the key findings of the research and make policy proposals for the country to adequately benefit from the financial sector.
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