By Angela Adu-Asomaning
Professor of Economics and Finance and President of Knutsford University College, Anthony Kwame Ahiawodzi, says in spite of the modest improvement in the Ghanaian financial sector, it still grapples with inefficiencies that have consequences for the mobilisation of domestic resources for development.
He challenged the financial sector to close the yawning gap of low interest on savings as against the huge lending rates on loans and credits.
Prof Ahiawodzi further called for the mobilisation of financial resources and the need to create an enabling environment for the financial sector to thrive.
Prof. Ahiawodzi threw the challenge in an inaugural lecture in Accra on “Assessing Efficiency of the Financial Sector in Ghana—Implications for Growth—An Application of the Ahiawodzian Model”.
Prof. Anthony Ahiawodzi emphasised the importance of the efficiency of the financial sector of any economy for the promotion of growth, particularly in developing economies like that of Ghana.
He said economic literatures have documented the state and performances of third-world economies and called for homegrown models to reset them for growth and sustainability.
He propounded a theory he developed and called the ‘’ Ahiawozian model of financial market efficiency’’, to address the challenges in the financial sector.
Prof. Ahiawodzi‘s model pinpoints challenges in the financial sector of Ghana and makes some observations, findings, and implications.
He called for the restoration of public confidence in the financial sector, in order to mobilise more idle funds to make this available for private investors at reduced interest rates.
