NBFIs competing with banks for deposits
The Managing Director of Cal Bank Limited, Mr Frank Adu Jnr, has blamed the inability of banks to grow their deposits on the competition they face from Non- Bank Financial Institutions (NBFIs).
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Currently, there are about 225 registered NBFIs operating in the country and they are able to lure customers to deposit their money with them instead of the banks.
Mr Adu was reacting to concerns about the marginal increase in the bank’s customer deposits for the first nine months of 2013, (GH¢742,100) compared to the same period of 2012 (GH¢583,500), representing an increase of 27.2 per cent.
Of all the key items on the bank’s balance sheet, customer deposits recorded the least increase, something which the MD described as a systematic problem with all banks at the Facts and Figures programme of the Ghana Stock Exchange (GSE).
“There are some government institutions who even place deposits with them, even though some of them take money from people and they disappear,” he stressed.
He said the urge to increase customer deposits had resulted in the running of several promotions aimed at increasing their margin.
The promotions, he, however, explained, were limited by the National Lotteries Authority (NLA), which allows a maximum of five banks to run promotions at a time; other than that the trend would have been that all banks would be running promotions.
That notwithstanding, the bank, he said was devising products and strategies to beef up its deposits.
Graphic Business/Ghana
